Buy Put

  • When? - The market is expected to go very low.
  • Strategy? - Buy a put option of the strike below which you expect the market to go
  • Advantages? - Limited loss and unlimited profit
  • Disadvantages? - Out-of-money options have less potential to make a profit.
  • Max Profit? - Unlimited
  • Max Loss? - Premium Paid
  • Break-even point? - Strike - Premium paid




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