What Is Buy Put Option Apr 2026

The set price at which you can sell the stock, regardless of its current market value.

The Ultimate Guide to Buying Put Options: Profit When the Market Falls what is buy put option

The stock drops to $90. You can now sell the stock at the $95 strike price. Your profit is the $5 difference ($95 - $90) minus the $3 premium paid, totaling $2 per share ($200) . The set price at which you can sell