Single1 legdebitbearish

Buy a put. A bearish position or a hedge, with a defined cost — and the other side of every cash-secured put sold on this platform.

You buy the right to sell 100 shares at the strike. The cost is the premium; the gain grows as the stock falls, bounded only by the stock reaching zero.

It serves two quite different purposes: a directional bearish bet, or insurance on shares you own. The structure is identical; the intent is not.

This is the counterparty to a cash-secured put. Someone buying this is paying for the right to hand you shares at the strike — which is precisely what you were paid to accept.

Priced off the guide's shared chain, on a $50 stock. Every figure beneath the diagram is computed from these legs by the same engine the Strategy Builder uses.

Flat at the debit above the strike.

A break-even at the strike less the premium, then rising as the stock falls further.

As a hedge over 100 shares it defines a floor for a known cost over a known period — a protective put. The cost is continuous: the protection expires and has to be repurchased.

As a directional position it suits a bearish view with a timeframe, with the loss capped at the premium.

Lower implied volatility makes it cheaper, which is why protection is least expensive precisely when it feels least necessary.

Like everything in this guide, these are descriptions of structures and conditions — context for your own decisions, not instructions to trade.