The stock stays at $100 or rises. You choose not to exercise the option, and your loss is capped at the $300 premium . The Break-Even Point
Imagine stock XYZ is trading at $100. You believe it will drop soon. what is buy put option
You buy one $95 strike put option for a $3 premium. Cost: Total cost is $300 ($3 premium × 100 shares). The stock stays at $100 or rises