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.

Related

hedge · bearish · contract · exercise · in the money · downside · volatility · black swan · sell · underlying · derivative · margin · leverage · protection · out of the money · theta · delta · short

Categories
Opposites
directional bet

put optionscall options

Rights to buy at set prices

calls · going long · long positions

Family

put, option, puts, putting, putter, output, input, options, optional

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