Your goal for the trade (e.g., protecting a portfolio, betting on a crash) Your experience level with options platforms
Think of it like an insurance policy for your stocks. You pay a small fee now to lock in a minimum selling price later. How a Put Option Works buying put options explained
Stock XYZ stays at $100 or rises. Your option expires worthless. Your total loss is the $200 premium. Your goal for the trade (e
The price at which you can sell the stock. Your goal for the trade (e.g.
Limited to the premium paid. If the stock stays flat or goes up, you only lose the money you spent to buy the option.
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