Long put
BearishLimited profitLimited loss
Buy a put: profits as price falls, risk capped at the premium.
Payoff at expiry — live BTC example
Net debit
$253.18
Max profit
$65,547
Max loss
$253.18
Breakeven
65,547
Example legs (0.7 DTE front)
- Buy 65,800 put
Entry greeks (per 1 BTC notional): Δ -0.449 · Γ 0.3508 per 1% · vega $11.46/pt · theta $-208.66/day
How it works
One long put pays strike-minus-price below the strike at expiry; above it the loss is capped at the premium.
When to use it
You expect a sharp drop, or want defined-cost downside exposure without shorting the underlying.
Risks & management
Theta bleeds the position daily and a sideways market loses the full premium. IV crush after an event can hurt even when price falls.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.