Options / Long put
Payoff at expiry for a generic example with the stock at 100. Green is profit, red is loss, dashed lines are break-even prices.
You buy a put option. It gives you the right to sell 100 shares at the strike price until expiry.
When it is used: When you expect a fall, or want to protect shares you own against one.
Main risk: The whole premium is lost if the stock finishes at or above the strike.
- Net cost
- $400 per contract
- Max gain
- Large (stock to zero)
- Max loss
- -$400
- Break-even
- 96.0
- Legs
- 1
The legs in this example
| Action | Contract | Strike | Example price |
|---|---|---|---|
| Buy | 1 put | strike 100 | $4.00 per share |
Research that fits this view
Our latest Sell-rated company research, for readers who want to see the thinking behind a bearish view. This is a link to research, not a trade idea.
- BFLY: Strong Sell-rated research (published 2026-11-02)
- ENPH: Strong Sell-rated research (published 2026-10-31)
- VKTX: Strong Sell-rated research (published 2026-10-29)
Results for this strategy
We track our own hypothetical examples privately and publish each result at least 30 days after the play has closed, wins and losses together, once there are enough closed plays to say something. None have closed yet. This table will list every closed play with its expiry result and a link to the research it came from.
Back to all option strategies · How we track results