Put Option Help

Question

As part of a newsletter subscription service, I purchased the following at their recommendation:
4 contracts of USB May 21, 2021 $52.50 Puts at price of $1.33
1 contract of HD May 21, 2021 $295 Puts at price of $2.25
What is my potential maximum loss?

Hilmar · Answer

What is my potential maximum loss?

All the money that paid for the options. If the stock doesn't fall below the put prices, the options will just expire (and are worthless). Assuming that a contract is 100 shares, that would be a total of $757 .
Sorry if I'm overstepping here: if you have to ask this type of question you probably should not trade in options, regardless of what any newsletter says.

Put Option Help

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