LONG PUT
A strategy used in options trading where a put option is purchased as a speculative play on a decline in the price of the underlying equity or index. A put option is bought on the open exchange, hoping the underlying stock drops in price. Thus, escalating the option value that are held long in the portfolio.
The options can either be sold before the expiration or held to maturity, at which time the investor must buy the stocks at market prices, then sell the stock at the set exercise price.
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