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    Option — Buy To Open Put

    A put option is an order used to initiate a new long position in a put option contract. This order signals to the market that you are creating a new position rather than closing an existing one. Core Concept

    : Investors typically use this strategy when they expect the underlying asset's price to decline. buy to open put option

    : Calculated as the Strike Price minus the Premium Paid . A put option is an order used to

    : It can also be used as a "protective put" (insurance) to limit downside risk for a stock you already own. Risk and Reward Profile buy to open put option

    : Limited to the initial premium paid plus any commissions.