You buy one $95 strike put option for a $3 premium. Cost: Total cost is $300 ($3 premium × 100 shares).
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 what is buy put option
This right is valid only until the contract's . To acquire this right, the buyer pays an upfront fee called a premium . Key Terminology You buy one $95 strike put option for a $3 premium
The Ultimate Guide to Buying Put Options: Profit When the Market Falls what is buy put option