Buy To Open Put Example -

Unlike shorting a stock, your maximum loss is strictly limited to the premium paid. Key Terms to Remember Premium: The "entry fee" you pay to the seller.

Your maximum risk is capped. You simply lose the $200 you paid to open the position. Why Traders "Buy to Open" Puts buy to open put example

Your right to sell at $95 is now very valuable. The option is worth at least $15 per share ($95 strike - $80 market price). Unlike shorting a stock, your maximum loss is