### Comment:
I’m new to trading..can one of you kind souls tell me if I got this right. So a put is when you have a contract where you can sell your shares at a specific price? So you would want to exercise when you believe the value of the stock is going to drop below what your selling price is? With that, I still don’t understand how you can make 54k by only putting 1k down

### REPLY:
How do you not get it? You explained it perfectly. If you bought a 100$ put. And then stock fell to 50$.  
 Youd be 'buying' sharew at 50 and selling at 100.  
 Multiply by 100 shares per contract. And thaynrifht there is 5k.

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