Question 1

What is a Long Put?

Accepted Answer

You buy (long) a Put

Question 2

What is the max loss of a Long Put?

Accepted Answer

The max loss is Cost of the Put.

Question 3

When do I breakeven when utilizing a Long Put strategy?

Accepted Answer

The breakeven is defined as Strike Price minus Premium (debit) paid.

Question 4

What is the typical application of a Long Put?

Accepted Answer

The typical applicatio is: 1. Speculate on a large, volatile price decrease.