Profit increases as the stock price crashes. 🛡️ Portfolio Protection (Hedging)
Investors use puts like an insurance policy for their existing holdings. Buying a put for a stock you already own. Floor Price: Locks in a minimum sale price for your shares. why would you buy a put option
A put option gives you the right, but not the obligation, to sell an underlying asset at a specified price (the strike price) within a specific timeframe. 📉 Profit from Price Drops Profit increases as the stock price crashes
Buying puts offers structural advantages over other bearish strategies like short selling. but not the obligation
Using advanced spreads to lower the cost of the trade.
Hedging a position before a volatile earnings report.