If you have a put option on a stock index you hope the market will:

Question

Quizplus · Accepted Answer

When you have a put option on a stock index, you are essentially betting that the market will go down. This is because a put option gives you the right to sell the stock index at a fixed price, so if the market goes down, the value of the put option increases and you can sell the stock index at a higher price than the market value. Therefore, the best choice when you have a put option is for the market to go down.

If You Have a Put Option on a Stock Index