: As the S&P 500 price goes down , the value of your put option goes up . 🔍 SPY vs. SPX: Which to Choose?
: The "floor" price you choose. If the S&P falls below this, your put gains value. Premium : The upfront cost (your maximum possible loss).
: The "use-by" date. If the market doesn't drop by this time, the option expires worthless.
: If you believe the market is overvalued or a crash is coming, buying puts allows you to profit from that drop.
Buying S&p Puts -
: As the S&P 500 price goes down , the value of your put option goes up . 🔍 SPY vs. SPX: Which to Choose?
: The "floor" price you choose. If the S&P falls below this, your put gains value. Premium : The upfront cost (your maximum possible loss). buying s&p puts
: The "use-by" date. If the market doesn't drop by this time, the option expires worthless. : As the S&P 500 price goes down
: If you believe the market is overvalued or a crash is coming, buying puts allows you to profit from that drop. buying s&p puts