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

$558.58

Max profit

$74,241

Max loss

$558.58

Breakeven

74,241

Example legs (0.4 DTE front)

Buy 74,800 put

Entry greeks (per 1 BTC notional): Δ -0.497 · Γ 0.2138 per 1% · vega $9.86/pt · theta $-698.25/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.

Open in payoff builder →Replay this on a real historical day →

Related structures

Long call
Short call (naked)
Short put / cash-secured put

Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.