B. Put Option Profit Graph of Buyer and Seller

Situation: Investor thinks a security will decrease in price -- can short sell or buy a PUT option. If the security increases in price, the short position produces a capital loss and the option position produces a premium loss.

Situation: Investor thinks a security will decrease in price -- can short sell or buy a PUT option. If the security increases in price, the short position produces a capital loss and the option position produces a premium loss.