Long Put

In options trading, a long put position is where an options trader owns the put option. These can be struck at in-the-money, at-the-money or out-of-the-money levels i.e. the trader goes long a put in the expectation that the price of the underlying will be below the strike price at expiry. Long puts are an efficient and cost-effective way of expressing a short position in the underlying, since the loss experienced by a losing options strategy is restricted to the options premium. Losses on a short position in the underlying where the underlying rises could be substantial.