Long Put

Buying options and selling options have different profit and risk potential based on the rights and obligations of the two parties involved.

To create a short synthetic stock position, you simply buy an ATM put option and sell an ATM call option at the same strike price. This creates a bearish position with much less capital than shorting a stock.

A long put is a bearish options strategy where the expectation is a decline in price prior to expiration. Buying a put option is a levered, risk-defined alternative to selling shares of stock.

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.

A long put is a bearish options strategy. Buying a put option is a levered, risk-defined, cost-effective alternative to selling shares of stock.