The Long Put Masterclass (Bearish).

Let’s look at the actual trade from our course:

  • The Goal: You believe NVDA (trading at $193.02) is overvalued and will drop.

  • The Action: You buy one $218 Put option expiring in 80 days.

  • The Cost: $30.40 per share.

  • Total Outlay: $30.40 x 100 = $3,040 (The Debit).

By paying this $3,040, you have locked in the right to sell 100 shares of NVDA at $218, regardless of how low the price falls.