Default view is ±10% around the breakeven point.
Increase to expand the view (helpful to model larger drops).
Results
Breakeven (Expiry)$0.00
Max Profit$0.00
Max Loss$0.00
Payoff Chart (Expiration)
Chart is centered around breakeven by default (±10%). Adjust range to expand.
Long Put Options Strategy (Buy Put)
A long put (also called a buy put) is a bearish options strategy that can profit
if the underlying stock price falls. Your risk is typically limited to the premium paid,
and your profit potential increases as the underlying falls (down to $0 at expiration).
Long Put Breakeven
A common breakeven estimate for a long put at expiration is:
Breakeven = Strike Price − Premium Paid.
If the underlying is below breakeven at expiration, the position is typically profitable (ignoring fees).
Max Profit and Max Loss
Max loss is usually the premium paid (per share) × 100 × contracts.
Max profit is achieved if the underlying goes to $0 at expiration:
approximately (Strike − Premium) × 100 × contracts.
When Traders Use Long Puts
Traders often use long puts to speculate on a decline, or to hedge downside risk on a stock position.
Real option prices before expiration depend on implied volatility (IV), time decay (theta), and bid/ask spreads.
Long Put Calculator FAQ
Is my risk limited on a long put?
Typically yes. For a long put, max loss is usually the premium paid (plus fees/commissions).
Why does my broker P&L differ from this chart?
This chart shows payoff at expiration using intrinsic value. Your broker shows mark-to-market value, which depends on time to expiration, implied volatility, and bid/ask spreads.
What happens if the stock goes to zero?
At expiration, a long put’s intrinsic value approaches the strike price. Your approximate profit is (Strike − Premium) × 100 × contracts.
Does this calculator include Greeks and IV?
No. This is an expiration payoff model. Greeks and IV affect option value before expiration.