Glossary · Trading basics · L

Long put in plain English.

Buying a put: the right to sell 100 shares at the strike until expiration. It profits below strike − premium at expiration; the most it can lose is the premium.

Track

Trading basics

29 terms in this track

Taught in

Long calls and puts: directional options

In the index

65 of 129

Filed under L

Connections

8

Related terms mapped below

01

The idea, in context

How to read the picture above and where the Academy teaches it.

Reading the illustration

Strikes around today’s price, drawn for a put: strikes above the price are in the money, below it out of the money.

This definition usesExpirationPremium

In French: Put acheté (long put)

Where it’s taught

Trading basics

Long calls and puts: directional options

“Long calls and puts: directional options” introduces this term with worked examples, a quiz and the trades around it. The Academy is part of the YieldCove membership.

02

8 terms around this one — the words its definition uses, its lesson siblings and the terms that build on it.

03

Where to go next

Understand it, try it with real numbers, then track it for free.

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