What Is Put Option?
Definition and plain-English explanation of "Put Option"
A put option gives the buyer the right to sell a stock at a specific strike price before the expiration date. If the stock falls below the strike price, the put becomes profitable. Puts are used either for speculation (betting prices will fall) or as insurance to protect an existing stock position from a decline (known as a protective put).
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.