Long Put

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Dictionary Says

Definition of 'Long Put'

An options strategy in which a put option is purchased as a speculative play on a downturn in the price of the underlying equity or index. In a long put trade, a put option is purchased on the open exchange with the hope that the underling stock falls in price, thereby increasing the value of the options, which are "held long" in the portfolio. 

The options can either be sold prior to expiration (for a profit or loss) or held to expiration, at which time the investor must purchase the stock at market prices, then sell the stock at the stated exercise price.

Long Put
Investopedia Says

Investopedia explains 'Long Put'

The long put strategy represents an alternative to an investor simply selling a stock short, then buying it back at a profit if the stock falls in price. Options can be favored over shorting due to increased liquidity (especially for stocks with smaller floats), increased leverage and a capped maximum loss (the investor cannot lose more than premiums paid).
Search results for

'Long Put'

  • Profiting From Stock Declines: Bear Put Spread Vs. Long Put

    http://www.investopedia.com/articles/optioninvestor/09/bear-put-spread-long-put.asp
    ... Vs. Long Put. ... Let's first consider what would have to happen in order for
    these two long put example trades to make a profit. Making ...

  • Put-Call Parity And Arbitrage Opportunity

    http://www.investopedia.com/articles/optioninvestor/05/011905.asp
    ... gain is unlimited. Now, consider the simultaneous purchase of a long put
    and 100 shares of the underlying stock. Once again, your ...

  • Prices Plunging? Buy A Put!

    http://www.investopedia.com/articles/optioninvestor/120401.asp
    You can make money on a falling stock. Find out how going long on a put
    can lead to profits. ... stock? By going long on a put. Puts ...

  • Options Greeks: Position Greeks | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks6.asp
    ... But what happens if we have a long call and long put with the same strikes
    (known as a long straddle)? What is the position Delta? ...

  • Option Price-Volatility Relationship: Avoiding Negative Surprises

    http://www.investopedia.com/articles/optioninvestor/05/020205.asp
    ... But in the opposite to their "ideal" conditions, the long put and short put experience
    the worst possible combination of effects, marked by "-/-" ...

  • CFA Level 1 Study Guide - Derivatives - Managing Risk with Options ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/managing-risk-options-strategies-long-short-call-put-positions.asp
    Learn the various payoffs long or short positions on call and put options. Provides
    diagrams showcasing the payoffs to each of the positions. ...

  • Practical And Affordable Hedging Strategies

    http://www.investopedia.com/articles/optioninvestor/07/affordable-hedging.asp
    ... investor is hoping that Intel's stock price will appreciate, and that the short
    put option will expire worthless in 180 days, leaving the long put option in ...

  • Profit On Any Price Change With Long Straddles

    http://www.investopedia.com/articles/optioninvestor/09/long-straddle-options-trading.asp
    ... Mechanics of the Long Straddle A long straddle position is entered into simply by
    buying a call option and a put option with the same strike price and the same ...

  • Trading The QQQQ With In-The-Money Put Spreads

    http://www.investopedia.com/articles/optioninvestor/05/TradingQQQQ.asp
    ... the only added "cost" here is that the upside profit potential is capped at $1,140
    with the put spread. With a really big move higher, the long calls would ...

  • Solving Mixed Options Problems On The Series 7

    http://www.investopedia.com/articles/professionaleducation/07/Series7OptionswStocks.asp
    ... (For related reading, see A Beginner's Guide To Hedging.) Long Hedges =
    Long Stock and Long Put A long stock position is bullish. ...

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