Below Strike

OEX Index is at or above 605 at expiration

Buy 1 OEX 605 Put at $11

Say the OEX index did not move as anticipated, but instead increased with the exercise settlement value at or above $595 put strike price at expiration. The OEX 595 put would expire out-of-the-money and with no value, so the investor would lose the total premium of $1,100 initially paid for the option. This would be the limited, maximum loss no matter how high index OEX had risen.

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