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Comparision (LONG PUT VS LONG PUT)

 

Compare Strategies

  LONG PUT LONG PUT
About Strategy

Long Put Option Strategy

This 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.
Risk: The maximum loss will be the premium amount paid.<

Long Put Option Strategy

This 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.
Risk: The maximum loss will be the premium amount paid.< ..

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.

LONG PUT

LONG PUT