Why Would You: Buy A Put Option

Hedging a position before a volatile earnings report.

Trading on macro trends or sector-wide weakness. why would you buy a put option

You don't need a margin account to buy a basic put. Hedging a position before a volatile earnings report

Using advanced spreads to lower the cost of the trade. why would you buy a put option

The most common reason to buy a put is betting that a stock's price will fall. Control many shares with relatively little cash. Limited Risk: You can only lose the premium you paid.

Unlike shorting, you can't lose more than your initial investment.