Bearish — pay debit, downside profit, max loss = premium paid.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
You pay a premium for the right to sell 100 shares at the strike until expiration. Value rises as the stock falls — a defined-risk way to profit from (or hedge against) a decline.
When you expect a drop, or want insurance on shares you own. Like long calls, puts fight time decay — being right eventually is not enough; you need the move within the option's lifetime.
Maximum loss is the premium paid. Breakeven is the strike minus the premium. Puts on volatile names get expensive precisely when you want them most.
Similar: Both are defined-risk bearish bets.
Different: The spread caps profit at a level in exchange for a smaller debit and less decay drag.
Similar: Identical option leg.
Different: Protective put pairs it WITH shares as insurance; the naked long put is an outright bearish bet.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.