Long Put Calculator
Visualize the profit and loss for any long put option.
Option Parameters
Key Metrics
Enter parameters and calculate to see results.
Enter parameters and calculate to view P/L chart
Free 160-Page Options Guide
Clear visuals and real examples for every essential concept.
What Is a Long Put Option?
A long put option gives you the right, but not the obligation, to sell shares at the strike price before a set expiration date. It's a bearish strategy with limited risk and substantial profit potential if the stock declines.
Key Characteristics
- Max Loss: Limited to the amount you pay to enter the trade.
- Max Profit: (Strike price − price paid for the put) × $100 × number of puts. Put options increase in value as the stock price falls, which can only fall to zero.
- Breakeven: Strike price − the price you paid for the put
- Outlook: Strong bearish outlook with limited risk if you're wrong
How to Read the P/L Chart
The white line (Expiration) shows your profit or loss at expiration. This is the final outcome at that stock price if you hold the option until it expires. The payoff graph highlights the long put's limited upside risk and big downside payoff. Unlike shorting stock, this strategy is protected from large stock price increases.
The cyan line (T+0) shows your theoretical P/L at trade entry. If the stock falls right after entry, you can profit even if its price stays above the expiration breakeven. The gap between the T+0 and expiration lines shows time decay—the amount lost as time passes until expiration.
Using This Calculator
- Stock Price: The price of the stock at trade entry
- Strike Price: The price at which you can sell shares using the put option
- Premium: The price you pay for the option. Multiply by 100 and the number of contracts for your total cost and risk. ($7 entry price x 100 x 3 contracts = $2,100 total cost)
- Days to Expiration: How much time is left until the option expires
- Implied Volatility: The market's expectation of future stock price movements, as implied by the stock's option prices
Long Put vs Bear Put Spread
An extension of the long put strategy is the bear put spread. By selling a put at a lower strike, you reduce your net cost and risk, but you also cap your profit potential. In most scenarios, the put spread will outperform a naked long put because of the cheaper cost/higher breakeven price.
If you buy a 100 put for $5 and the stock is $90 at expiration, you double your money. But if you buy a 100 put and sell a 90 put for a net $4 debit, and the stock is $90 at expiration, you make 2.5x your money on the same move. The naked put purchase would only outperform with a much larger decline.
Using Long Puts as Portfolio Insurance
A long put can also protect stock you already own—a strategy called a protective put. Instead of speculating on a decline, you're paying to guarantee a minimum sale price for your shares.
If you own 100 shares of a $100 stock and buy a $95 put, your downside is capped at $95 minus the put premium. The stock can fall to zero, but you'll still be able to sell your shares at $95.
What Is a Long Put? — Full strategy guide with examples
Related Calculators
- Bear Put Spread Calculator — Reduce cost, cap profit
- Long Call Calculator — Bullish counterpart
- Cash Secured Put Calculator — Sell puts for income
- Protective Put Guide — Use long puts as portfolio insurance
