Long Put
Outlook: Bearish
Single leg
Buy a put. Pay premium. Profit if the underlying falls below strike - premium.
Max profit
Strike - premium (reached only if underlying goes to zero).
Max loss
Premium paid.
Breakeven
Strike - premium.
Legs
Long
1×
put
ATM
Structure
Long 1 put at the chosen strike.
When to use
Bearish directional view, hedge for a long position, or insurance into a known event.
Example
SPY at $450. Long 440 put 45 DTE at $3. Breakeven $437. SPY closes at $425 → profit $12 per share.
Notes
- Equity puts trade at higher IV than equidistant calls (skew); pays a small structural premium.
Build it in the simulator
Open this structure in the app, adjust spot, IV, and DTE, and watch the payoff and Greeks move.
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