Buy To Open Put Example 🆒

The price at which you have the right to sell the stock.

You wouldn't exercise your right to sell at $95 if you can sell on the open market for $110. buy to open put example

If you already own 100 shares of XYZ, buying this put acts as an insurance policy. No matter how low the stock falls, you are guaranteed the ability to sell at $95. The price at which you have the right to sell the stock