Buy To Open Put Option File

: It can also be used as a "protective put" (insurance) to limit downside risk for a stock you already own. Risk and Reward Profile

: By "buying to open" a put, you pay an upfront fee (premium) for the right, but not the obligation, to sell 100 shares of an underlying stock at a specific strike price before the expiration date . buy to open put option

: Investors typically use this strategy when they expect the underlying asset's price to decline. : It can also be used as a

: Calculated as the Strike Price minus the Premium Paid . but not the obligation

: Substantial, peaking if the underlying stock price falls to zero.

: Limited to the initial premium paid plus any commissions.