Long Put

[sunandaC]

Bearish Speculation

The investor buys such a Put Option instead of actually owning the

underlying security and making profit out of downward movement of the

same. “ Short Selling”

The investor willing to sell his securities at a future date due to some

reason protects himself against fall in the price in underlying security and

gets his selling price locked by taking a Long Put.

Maximum Profit is LIMITED by stock declining to Zero.

Maximum Loss is LIMITED to the extent of Option Premium paid.

 

[rosemarry2]

Bearish Speculation

The investor buys such a Put Option instead of actually owning the

underlying security and making profit out of downward movement of the

same. “ Short Selling”

The investor willing to sell his securities at a future date due to some

reason protects himself against fall in the price in underlying security and

gets his selling price locked by taking a Long Put.

Maximum Profit is LIMITED by stock declining to Zero.

Maximum Loss is LIMITED to the extent of Option Premium paid.

Nice post Sunanda,

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