Compare Strategies
LONG PUT | LONG PUT | |
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About Strategy |
Long Put Option StrategyThis strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. |
Long Put Option StrategyThis strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. |
LONG PUT Vs LONG PUT - Details
LONG PUT | LONG PUT | |
---|---|---|
Market View | Bearish | Bearish |
Type (CE/PE) | PE (Put Option) | PE (Put Option) |
Number Of Positions | 1 | 1 |
Strategy Level | Beginners | Beginners |
Reward Profile | Unlimited | Unlimited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike Price of Long Put - Premium Paid | Strike Price of Long Put - Premium Paid |
LONG PUT Vs LONG PUT - When & How to use ?
LONG PUT | LONG PUT | |
---|---|---|
Market View | Bearish | Bearish |
When to use? | A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future. | A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future. |
Action | Buy Put Option | Buy Put Option |
Breakeven Point | Strike Price of Long Put - Premium Paid | Strike Price of Long Put - Premium Paid |
LONG PUT Vs LONG PUT - Risk & Reward
LONG PUT | LONG PUT | |
---|---|---|
Maximum Profit Scenario | Profit = Strike Price of Long Put - Premium Paid | Profit = Strike Price of Long Put - Premium Paid |
Maximum Loss Scenario | Max Loss = Premium Paid + Commissions Paid | Max Loss = Premium Paid + Commissions Paid |
Risk | Limited | Limited |
Reward | Unlimited | Unlimited |
LONG PUT Vs LONG PUT - Strategy Pros & Cons
LONG PUT | LONG PUT | |
---|---|---|
Similar Strategies | Protective Call, Short Put | Protective Call, Short Put |
Disadvantage | • 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay. | • 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay. |
Advantages | • Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk. | • Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk. |