The stock stays at $100 or rises. You choose not to exercise the option, and your loss is capped at the $300 premium . The Break-Even Point
To profit, the stock must fall below the strike price by more than the premium you paid. What Are Put Options and How Do They Work? - IG UK what is buy put option
This right is valid only until the contract's . To acquire this right, the buyer pays an upfront fee called a premium . Key Terminology The stock stays at $100 or rises
The set price at which you can sell the stock, regardless of its current market value. What Are Put Options and How Do They Work
The cost you pay to buy the option; this is also your maximum potential loss.
The Ultimate Guide to Buying Put Options: Profit When the Market Falls
A is a financial contract that gives the buyer the right, but not the obligation , to sell an underlying asset (like 100 shares of a stock) at a predetermined price, known as the strike price .