Mechanics
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11 min
The long put, deep
The mirror of the long call, mechanically. Pricing skew, hedging use, and the cost of running a permanent insurance policy.
In this lesson
- When the long put is the right tool
- Skew: bearish convexity costs more
- A worked directional example
- Long puts as hedge: the protective put
- The insurance trap
- Operational notes
- Directional bearish trading is harder over long horizons
Read the full lesson in the app
The complete lesson, with worked examples, callouts, and a quiz to test yourself, is in Iron Condor Options.
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