Why Would You Buy A Put Option Here
Buying puts offers structural advantages over other bearish strategies like short selling.
The most common reason to buy a put is betting that a stock's price will fall. Control many shares with relatively little cash. Limited Risk: You can only lose the premium you paid. why would you buy a put option
📍 A put option becomes "In the Money" (profitable) when the market price drops below your strike price. Buying puts offers structural advantages over other bearish
Hedging a position before a volatile earnings report. why would you buy a put option
Using advanced spreads to lower the cost of the trade.
Unlike shorting, you can't lose more than your initial investment.