Because you paid $30.40 for the option, NVDA doesn’t just have to fall—it has to fall far enough to cover your cost.

• Strike Price: $218.00

• Premium Paid: $30.40

• Breakeven Point: $187.60 (Strike price minus Premium Paid)

The Reality Check: For this trade to be profitable at expiration, NVDA must be below $187.60. However, if NVDA crashes tomorrow, you can sell the put for a massive profit even if it hasn’t hit $187 yet, because the option still has “Time Value.”

👨‍🏫 Mentor’s Insight: The ‘Insurance Policy’ Mindset

“Stephen here. I want you to think of a Long Put exactly like Car Insurance.

You pay a premium (the debit) to the insurance company. If you don’t have an accident (the stock doesn’t crash), the insurance company keeps your money. But if you have a total wreck (the stock drops 20%), the insurance company has to pay you out based on the value you locked in.

In our weekly 1-on-1 mentoring sessions, I’ll help you pick the right ‘Deductible’ (Strike Price). Think a market crash is coming? Book a Free Strategy Call today and let’s find the best way to insure your portfolio or profit from the drop.”

🛠️ Stephen’s Implementation Tip:

• The 100 Multiplier: Always remember, a $30.40 quote means $3,040 out of your account. Ensure your position sizing is correct!

• Quant Search: Click the chat bubble and ask Quant a question about the long put strategy to get a quick answer.