Long Put - At a Glance
Here is a brief summary about long put strategy.
Strategy
- Long Put
Alternative Name
- n/a
Pre-Requisite Strategy Knowledge
- Short Stock (link to strategy)
Legs of Trade
- 1 leg
- Buy 1 XYZ put
Sentiment
- Bearish
Example
- Long 10 XYZ January 50 puts for $1.30, plus fees and commissions
Rule to Remember
- n/a
Max Potential Profit (GAIN)
- Significant, but limited
Break-Even Point
- The breakeven point occurs when XYZ stock price is trading equal to the strike price less the net premium paid.
Max Potential Risk (LOSS)
- Net Premium Paid (debit)
Ideal Outcome
- XYZ price declines significantly below the strike price less net premium paid
Margin Requirement
- No
Early Assignment Risk
- Early assignment risk applies to short options positions only.
- Long options have no risk of early assignment.
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Lesson List
1
Long Call (1)
2
Long Call (2)
Long Put - At a Glance
4
Long Put (1)
5
Long Put (2)
6
Short Put - At a Glance
7
Short Put (1)
8
Short Put (2)
9
Short Call - At a Glance
10
Short Call (1)
11
Short Call (2)
12
Long Call - At a Glance
13
Protective Put (Long Stock + Long Put)
14
Covered Call
15
Introduction to Buy Writes and Cash Secured Puts
16
Why Should Investors Consider Buy Writes and Cash Secured Puts?
17
Selling Cash-Secured Puts for Income: Put Your Idle Cash to Work!
18
Pros and Cons: Selling Options for Income
19
The Importance of Strike Selection When Selling Options
20
Bear Call Spread
21
Bear Put Spread
22
Bull Put Spread
23
Bull Call Spread
24
Put Backspread (also called Ratio Volatility Put Spread)
25
Call Backspread (also called Ratio Volatility Call Spread)
26
Long Call Calendar Spread
27
Long Call Butterfly
28
Long Strangle
29
Long Straddle
30
Short Strangle
31
Covered Strangle
32
Collar (Long Stock + Long Lower Strike Put + Short Higher Strike Call)
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