Long Put (bearish) Calculator

A long put is a bearish trade where you buy a put option for the right to sell the underlying stock at the strike price before expiration.

Trade Details

Stock Symbol

Current Stock Price ($)

Strike Price ($)

Premium per Share ($)

Number of Contracts

Each contract = 100 shares

Trade Summary

Enter option details to see payoff diagram

Breakeven

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Cost to Enter

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Commonly asked Long Put questions

How do you calculate long put profit and loss?

At expiration, intrinsic value per share is max(0, strike − stock price). Your P&L per share is intrinsic minus premium paid. Per contract, multiply by 100 and the number of contracts. Breakeven is strike minus premium per share.

How do you choose a strike for a long put?

Out-of-the-money puts cost less but need a larger drop. At-the-money balances cost and sensitivity. In-the-money puts have more intrinsic value and behave more like full downside exposure. Match strike to your target move and budget.

What is the maximum loss on a long put?

You can lose at most the total premium paid (premium × contracts × 100). Profit potential is large if the stock falls toward zero, capped by strike minus premium per share times shares controlled.

How does implied volatility affect long puts?

Higher implied volatility usually raises put premiums, so you pay more upfront. Long options are long vega: rising IV can help mark-to-market before expiry; falling IV can hurt if the stock does not move.

What about time decay on long puts?

Extrinsic value decays as expiration approaches (theta). If the stock does not move enough, time decay works against long put holders.

What happens when a put option expires?

If the put expires in the money (stock below strike), you can exercise or sell for intrinsic value. If it expires out of the money, it expires worthless and you lose the premium paid.