Chapter 06 · Section 6.1

Purchasing a Put

When you purchase a put:

• a) you are long and want the market to fall.
  Yes. A put option is a bearish position. It will increase in value if the market falls. Continue
  b) you are short and want the market to rally.
  c) you are neutral and want the market to sit.
  d) you are neutral but want the market to move in either direction.