long put


Definition
A strategy used in options trading, where a put option is purchased in hopes that the equity's price will decrease. If the price decreases, the option value increases, and is therefore beneficial for the purchaser. The investor can sell the option when he thinks the price will not decrease any further, or can wait until the expiration date to sell the option. A long put typically has decreased risk than the short sale strategy.


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long put is ...

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