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I am using Robinhood and looking at buying a put for BYND. The current stock price is around $93.00, but most of the puts I find have a strike price in the $40's. I can't find anything with a breakeven point above $65. Is this reasonable? It seems to me you shouldn't have to incur such a large risk just because you think a stock will go down.

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    where are you looking at these puts? nasdaq.com/symbol/bynd/… seems to indicate there are plenty with higher than $40 strike – MD-Tech May 16 at 16:30
  • What risk are you incurring? Those puts should be very cheap. – D Stanley May 16 at 16:50
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I am using Robinhood and looking at buying a put for BYND. The current stock price is around $93.00, but most of the puts I find have a strike price in the $40's.

BYND offers strike prices from $35 to $135.

I can't find anything with a break even point above $65. Is this reasonable? It seems to me you shouldn't have to incur such a large risk just because you think a stock will go down.

The higher the implied volatility, the higher the option premium. BYND has a monstrous average implied volatility of about 135% so BYND's option premiums are going to be huge. I surmise that's what you mean by a "break even point above $65" (strike price less premium paid). In such cases, buying long options is likely to be a disaster waiting to happen. If you absolutely insist on betting on this one, consider doing a vertical spread so that you are also selling some of that fat premium, offsetting the fat premium that you'll pay for the long leg.

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