Buy To Open Put Example [2026]

Strike Price minus Premium (In this example: $93).

Two weeks later, Company XYZ misses earnings and the stock price plunges to . buy to open put example

Your maximum risk is capped. You simply lose the $200 you paid to open the position. Why Traders "Buy to Open" Puts Strike Price minus Premium (In this example: $93)

If you already own 100 shares of XYZ, buying this put acts as an insurance policy. No matter how low the stock falls, you are guaranteed the ability to sell at $95. buy to open put example