Options Basics

How to Buy a Put Option

Buying a put option is a cost-effective, risk-defined alternative to selling 100 shares of stock. Learn how to buy a put option and determine the profit and loss outcomes.
How to Buy a Put Option
Kirk Du Plessis
Apr 19, 2021

In this quick tutorial we'll again use AAPL stock as an example and go directly to my broker platform and walk through the steps to buy a put option anticipating that AAPL stock might drop the future. Just like we did with our tutorial on buying a call option, we'll help you determine your break-even price and expiration time for your put option which is calculated slightly different then a call option.

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Single-Leg vs Multi-Leg
Options enable you to use calls and puts in multiple ways to create single-leg and multi-leg strategies. Learn how to profit in different market conditions and define risk.

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