Why Would You Buy A Put Option «2027»
📍 A put option becomes "In the Money" (profitable) when the market price drops below your strike price.
Protects against sudden market crashes or "gap downs." ⚖️ Risk Management Features 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 📍 A put option becomes "In the Money"
Choose expiration dates ranging from days to years (LEAPS). 💰 Specific Use Cases but not the obligation
Unlike shorting, you can't lose more than your initial investment.