Benefiting from a sudden spike in market fear. ⚠️ Key Considerations
Control 100 shares for a fraction of the stock price. buy put option strategy
Betting on a market crash or specific company downturn. Benefiting from a sudden spike in market fear
The option loses value daily as expiration nears. 💰 Risk & Reward Maximum Profit: Significant (Strike Price minus Premium). Maximum Loss: Limited to the premium paid plus commissions. Breakeven: Strike Price minus Premium paid. ✅ Strategic Uses buy put option strategy
Measures how much the option price moves per $1 change in the stock.
High IV makes options more expensive to buy.