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Bearish Strategy

Long Put Calculator

Calculate potential profit and loss for buying a put option. A long put is a bearish strategy that profits when the stock price falls.

BearishLimited RiskLimited Reward

A long put gives you the right to sell the underlying stock at the strike price before expiration. You profit when the stock falls below the breakeven point (strike - premium). Maximum loss is limited to the premium paid.

Trade Details

Current price: $100.00

Each contract = 100 shares

Trade Summary
Net Debit$500.00
Max Profit$9,500.00
Max Loss$500.00
Breakeven$95.00
Payoff at ExpirationStock Price vs Profit/Loss
Current: $100.00
Breakeven: $95.00

Max Profit

$9500.00

Max Loss

$500.00

Breakeven

$95.00

Cost to Enter

$500.00

Understanding Long Puts

A long put is the most basic bearish options strategy. When you buy a put option, you're purchasing the right (but not the obligation) to sell 100 shares of the underlying stock at the strike price before the expiration date.

When to Use a Long Put

  • You expect the stock price to fall significantly
  • You want to hedge an existing long stock position
  • You want to profit from downside with limited risk

Key Formulas

Breakeven Price

Breakeven = Strike Price - Premium Paid

Maximum Profit

Max Profit = (Strike - Premium) × Contracts × 100

Related Calculators

Long Call CalculatorPut Spread CalculatorCollar Calculator

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