You are sure that the price will not fall. At expiration, break-even point is strike price A less premium received. Maximum profit realized if stock settles at or above A. LOSS increases as stock falls. At expiration, losses increase by one point for each point stock is below break-even. Because risk is open-ended, position must be watched closely.
Position is a growing asset.
As time passes, value of position increases as option loses its time value. OR Put option is bought with a stike of A and another put sold with a strike of B, producing a net credit. Y ou think the stock will go up somewhat or at least is a bit more likely to rise than to fall. Good position if you want to be in the stock but are unsure of bullish expectations. This is the most popular bullish strategy.