What Is Buy Put Option «8K 2026»

When you buy a put, you are essentially betting that the stock price will fall below the strike price before the expiration date. Example: Speculating on a Drop

The set price at which you can sell the stock, regardless of its current market value. what is buy put option

The stock drops to $90. You can now sell the stock at the $95 strike price. Your profit is the $5 difference ($95 - $90) minus the $3 premium paid, totaling $2 per share ($200) . When you buy a put, you are essentially