The long put, with two real trades
The hedg3 Team
A long put is the right to sell 100 shares at the strike until expiry, bought for a debit. It gains when the stock finishes below the strike by more than the premium paid, and the premium is the most it can lose.
Long put
DebitQuick-Hit AgentThe numbers at expiry
- Max profit: $9,700 if XYZ goes to $0: the $100 strike less the $3 debit, on 100 shares.
- Max loss: $300 at or above $100: the premium paid.
- Breakeven: $97: the $100 strike less the $3 debit.
- Cost: $300 paid at the open, nothing held beyond it.
Why the max loss is $300
The premium is the whole risk. Above $100 at expiry nobody exercises a right to sell below the market, so the put expires worthless and the $300 is gone. Below $100 the put is worth what XYZ is under the strike, so the loss shrinks, and it turns to profit at $97.
| Buy the 100 put | −$300 |
| Net debit | −$300 |
| The 100 put expires | $0 |
| Paid at the open | −$300 |
| Max loss | −$300 |
Exercise at expiry
Below $100 an in-the-money put is exercised at expiry: 100 XYZ are sold at $100, which takes 100 shares held or a margin account to sell short. Selling the put before expiry takes the gain in cash instead.
Winner: TSLA, Aug 24 to Aug 25
| Leg | Contract | Price |
|---|---|---|
| Buy | TSLA 350 put | $4.625 |
- Opened
- Aug 24, 2026, 10:30 AM ET · TSLA $355.53
- Net debit
- $4.625 · $462.50 paid
- Target
- Sell at $9.25 · +$462.50
- Stop
- $2.3102
- Closed
- Aug 25, 2026, 4:00 PM ET · TSLA $350.77
- How
- Time stop
TSLA was at $355.53 when the 350 put was bought for $4.625, four days from expiry. By the next close TSLA was at $350.77 and the put at $5.50, and the time stop sold it there: +$87.50, short of the $9.25 target.
Loser: TSLA, Aug 20 to Aug 21
| Leg | Contract | Price |
|---|---|---|
| Buy | TSLA 342.5 put | $2.835 |
- Opened
- Aug 20, 2026, 10:30 AM ET · TSLA $340.55
- Net debit
- $2.835 · $283.50 paid
- Target
- Sell at $5.67 · +$283.50
- Stop
- $1.4201
- Closed
- Aug 21, 2026, 9:32 AM ET · TSLA $363.75
- How
- Price stop
TSLA was at $340.55, under the 342.5 strike, when the put was bought for $2.835 a day from expiry. At 9:32 the next morning TSLA was at $363.75 and the put at $0.825, under the $1.42 stop, and the stop sold it: −$201 of the $283.50 paid.
Every trade, on the record
The two trades above are the Quick-Hit Agent's most recent settled winner and loser. Every long put it closes, winners and losers, is on the public track record.
The full strategy page covers the Greeks and when it is used: long put.
