basicLow RiskBearish
Long Put
The simplest bearish options trade. You pay a premium for the right to sell shares at the strike price.
What is a Long Put?
A long put gives you the right to sell 100 shares at the strike price before expiration. You profit when the stock falls below your strike. It's the inverse of a long call — your maximum loss is the premium paid, and profit grows as the stock drops.
When to use it
Use a long put when you're bearish on a stock or want to hedge an existing long stock position. Also used as portfolio insurance. Best when IV is low and you expect a significant downward move.
Structure
Buy 1 put option at your chosen strike and expiration.
Key Metrics
Max Profit
Strike price minus premium paid (stock can only go to zero). E.g. $50 put bought for $2 = max $4,800 profit per contract.
Max Loss
Limited to the premium paid.
Breakeven
Strike price − premium paid. E.g. $50 put for $2 = need stock below $48 to profit.
Greeks Profile
Delta: negative (profits as stock falls). Theta: negative. Vega: positive. Gamma: positive.
Tips & Best Practices
- 1Long puts are expensive during high-IV environments (earnings, macro events).
- 2Buy puts with enough time — short-dated puts decay fast.
- 3Consider a bear put spread to reduce cost if you have a specific target.
- 4A put on your own stock holdings is portfolio insurance — the cost is the "insurance premium."
See it in action
Model a Long Put with a real ticker. See the P&L chart, heatmap, and exact breakevens.
Open Long Put Calculator →