Tag Archives: option strategy

The buyers of a put think about how to benefit from the falls of price of the underlying one or be protected from them. They have a downward vision of the market and usually hope that it should increase the volatile nature.

The long put option strategy is a basic strategy in options trading where the investor buy put options with the belief that the price of the underlying security will go significantly below the striking price before the  expiration date. His risk, his potential of loss, is limited to the premium whereas his potential of benefit is unlimited to … Read more at Forex Trading System Central