Long Put

Buy long puts when you think the asset is going down

Let's walk through some hypothetical examples:

First, lets assume a user pays a $100 premium to buy a monthly Hex PUT option with a $80c expiry in 30 days. Lets assume the price is currently $1.

Here are two scenarios that might occur:

Scenario 1: The price of HEX goes to $1.30

Our users option will expire worthless once the expiration date is passed. No additional losses are incurred. The Nmoney issued will be burned, stabilizing the supply.

Scenario 2: The price of HEX goes to $.70

At the time of expiration, Our user will lose thie $100 premium. No additional losses are incurred.