The most straightforward option strategy for benefiting from an expected decrease in the price of some common stock while avoiding the unfavorable consequences should the price rise is to follow a:

Question

Quizplus · Accepted Answer

A long put strategy involves buying put options on a stock. If the stock's price decreases, the value of the put options increases, allowing the investor to profit from the decline. If the stock's price rises, the investor only loses the premium paid for the options, limiting potential losses.

The Most Straightforward Option Strategy for Benefiting from an Expected