Put Option - What Is Buy

Imagine stock XYZ is trading at $100. You believe it will drop soon.

The stock drops to $90. You can now sell the stock at the $95 strike price. Your profit is the $5 difference ($95 - $90) minus the $3 premium paid, totaling $2 per share ($200) . what is buy put option

When you buy a put, you are essentially betting that the stock price will fall below the strike price before the expiration date. Example: Speculating on a Drop Imagine stock XYZ is trading at $100