put options
Bearish derivative contracts
Put options are financial contracts giving the holder the right, but not the obligation, to sell an asset at a specified price within a set time period.
Investors buy puts to profit from price declines or to protect existing holdings against losses—a form of insurance.
She bought put options on the stock as a hedge against a market downturn.
The seller of a put collects a premium but must buy the asset if the holder exercises the option.
- strike pricePredetermined option execution level
- strikeForceful impact or stoppage
- premiumAdded cost for better
- expiration dateFinal day of validity
- expirationEnd of validity
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- investmentsbonds, stocks, securities, investment, equities
- financebank, CFO, banks, controller, finance
- speculationconjecture, guess, guessing, speculation, hypothesis
- stocksstock, shares, stock price, stocks, stock quote
- bear marketbearish, decline, downturn, correction, sell-off
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