Long Puts

Long Puts


Long Puts

Learn how to increase your leverage and take advantage of bearish stocks using long put options.

Want to get more out of your bearish trades? Looking for some additional leverage in your portfolio without all the hassle of shorting stocks? Long puts may be just what you have been looking for. Long puts enable you to amplify the returns you would normally see when shorting a stock and waiting for it to go down. In this course, we teach you the ins and outs of option trading and help you identify and avoid the pitfalls that catch too many options traders.

In this course, you will learn:

  • What a long put is and how it functions
  • The pros and cons of trading options in your portfolio
  • How to choose the best put option

Once you have completed this course you will:

  • Know what you have to do to get approved to trade long put options
  • Have the confidence to pull the trigger on your first long put options trade

More Information

Difficulty Level:Intermediate

Course Syllabus
Long Puts

Module 1Choose a Strike Price for a Long Put
Just as with long calls, the first thing you need to do when buying a put is determine which strike price you would like to buy because it will affect how much risk you will be exposed to in the trade, how much you will have to pay for the put and how volatile the option premium will be.
Lesson 1Reading: Choose a Strike Price for a Long Put 
Lesson 2Video: Choose a Strike for a Long Put (6:40) 
Lesson 3Quiz: Choosing a Strike Price for a Long Put 
Lesson 4Assignment: Analyze Front-Month Strike Prices on a Put 
Module 2Choosing an Expiration Date - Long Puts
Once you have determined which strike price you would like to buy when entering your long put trade, you next need to decide which expiration date to buy. Making this determination will affect how much you are going to have to spend on the trade and how long you are going to give the underlying stock to move in your desired direction.
Lesson 1Reading: Choosing an Expiration Date For Long Puts 
Lesson 2Video: Choosing an Expiration Date for Long Puts (5:47) 
Lesson 3Quiz: Choosing an Expiration Date 
Lesson 4Assignment: Choosing an Option Expiration Date - Long Puts 
Module 3Executing a Long Put Trade
Now that you've learned to execute a long call trade, it's time to learn how to execute a long put trade.
Lesson 1Reading: Executing a Long Put Trade 
Lesson 2Video: Executing A Long Put Trade (3:25) 
Lesson 3Quiz: Executing a Long Put Trade 
Lesson 4Assignment: Paper Trade a Long Put