Options Strategies
Long Put
Strategies Long Put
Component Buy put
Potential Profit
  • When the stock price/index level is below the break-even point
  • Limited to break-even point minus stock price/index level
Maximum Loss Total premium paid
Time Value Impact Negative
Break-even Strike price/level minus premium paid
  Net Position +1 Mar 200 Put

Component Buy ABC Mar $200 Put
Net Premium Pay $20
Break-even $200-$20=$180
Profit when Stock price is below $180
Potential Profit $180 - stock price
Potential Loss $20
Time Value Impact Negative