Buying a Put Option, also referred to as ”Going Long” on a put, is a strategy employed when an investor has a bearish outlook on the market and expects prices to decline. A Put Option gives the buyer the right, but not the obligation, to sell the underlying asset (to the Put seller) at a predetermined price, thereby limiting the buyer’s risk. This strategy benefits the investor when the price of the underlying asset decreases. However, the risk is confined to the premium paid, while the potential reward is limited to the difference between the strike price and zero, reduced by the premium.