The Options Millionaire How To Profit When Stocks Fall; A Beginner's Guide to Put Options
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Mar 11, 2026 Learn how falling markets can become opportunities through put options. The conversation covers using puts for protection, hedging against index drops, and simple bearish strategies to practice. Timing, strike selection, and the tradeoffs of cost versus coverage are explored. Real crash examples illustrate how insurance-like puts behaved in 1987, 2008, 2020 and 2022.
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How Put Options Work
- Put options give the right to sell a stock at a strike price before expiration and gain value when the stock falls.
- Peter used a $100 put on a $100 stock example where a drop to $85 increases the put's value because you can sell at $100.
Three Practical Uses Of Puts
- Use puts to speculate, hedge, or gain leverage, but beware speculation is the most common and often harmful use.
- Peter warns FOMO buyers often buy expensive puts after big drops when volatility spikes and premiums are high.
What Makes Puts Gain Value
- Put value is driven by stock drops, rising implied volatility, and correct timing to manage time decay.
- Peter emphasizes time decay as a key risk and that options lose value as expiration nears.