Also one scenario happened to me was my option trade ended up exactly at strike, I lost money. Near expiration it was going in and out of money. I didn't close my position.
For both puts and calls, if you buy them (=you’re long), you can't lose more than what you paid. Just close them before expiry (see above comment) In your scenario, do consider volatility. When volatility is high, buying options becomes more expensive. Take a hard look at your break-even: it's not enough to be correct about market direction, you also have to be right about how much the market moves in that direction, AND timing of the move.
In otherwords, a naked SPY 240 March 31 Put should be sold prior to expiring for a lost of nearly 10K to avoid a bigger lost if the market decide to increase?
So to make sure my math is correct. If I do the following: 1. Purchase SPY 240 Puts March 31 @ $3.00/$300 per Contract. 2. 33 Contracts = $9,900, which gives me the option to sell for $240 on or before March 31st. 3. If equity is at or above the strike price at expiration, I'll loose the investment amount, however not more than the $9,900 initial investment. 4. If SPY is lets say 230, I'll gain $10.00 for each share= $10x3300= $33,000. Is this math correct or no?