Key Takeaways A put on a put is an options contract that gives its buyer the right to sell an underlying options contract. The underlying asset of the put on a put option is a vanilla put option. A put on a put is essentially an option to sell an option. Put on a Put Explained T...
The maximum profit for both a simple short position and a synthetic put is if the stock's value falls to zero. Note that any benefit from a synthetic put must be weighted against the options'premium. Image by Julie Bang © Investopedia 2020 A synthetic put strategy helps protect against a...