Long Put Calculator
A Long Put is a direct bearish options strategy that provides significant leverage to profit from falling prices. It serves as an excellent alternative to short-selling stock directly, as it has zero margin-call risk.
By purchasing a single put option, you secure the right to sell the underlying asset at a pre-specified strike price. If the stock falls below the strike price minus the premium, the position profits. If the stock rallies, you lose only the premium paid.
Simulates P&L if the underlying closes at any price at expiry.
Frequently Asked Questions
What is the maximum profit of a Long Put?
The maximum profit occurs if the stock falls to exactly zero, yielding (Strike Price - Premium) * Contract Lot Size.
How does time decay impact a Long Put?
Time decay (Theta) is a negative headwind for all long options. As expiration approaches, the option loses value daily, assuming the stock price remains constant.