Buying a put (long put) is a strategy. Investors use it for two primary reasons:
: A put is ITM if the stock price is below the strike price. how to buy and sell put options
: Traders buy puts if they believe a stock’s price will drop significantly. This provides greater leverage than short-selling and caps potential losses at the initial premium paid. Buying a put (long put) is a strategy
: The buyer pays an upfront fee (premium) to the seller for this right. how to buy and sell put options