What is Put Option?
A put option gives the holder the right to sell the underlying asset at a fixed strike price until the option expires. A put buyer tends to gain if the underlying falls well below the strike before expiration, and the most a put buyer can lose is the premium paid. Puts are sometimes used as a form of protection on a position, but here the point is just the definition.
Why Put Option matters
Puts let traders express a downside view or hedge, so understanding them rounds out the basic options picture.
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