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.
Related information about long put:
- Long Put
What's more, the leverage involved in a long put strategy can generate attractive percentage returns if the forecast is right. Another common use for puts is ...
- Long Put Definition | Investopedia
An options strategy in which a put option is purchased as a speculative play on a downturn in the price of the underlying equity or index. In a long put trade, a put ...
- Long Put Explained | Online Option Trading Guide
What is Long Put? See detailed explanations and examples on how and when to use the Long Put options trading strategy.
- Put option - Wikipedia, the free encyclopedia
Generally, a put option that is purchased is referred to as a long put and a put option that is sold is referred to as a short put. A naked put, also called an ...
- Long Put Option
Like the long call a long put is a nice simple way to take a position on market direction without risking everything. Except with a put option you want the market to ...
- Long Put - Options Trading Using Long Puts
Description of the basic options strategy known as a long put, including instructions for making a long put trade, and explanations of the risk and reward of long ...
- Long Put - TradeKing
How to trade a long put. Get detailed strategy tips, setup guides and examples for trading long put options.
- Long Put Spread | Bull Put Spread - The Options Playbook
A long put spread, or bull put spread, is an alternative to buying a long put where you also sell a put at a strike price below the purchased put strike price.