PUT options

A put option or "put" for short is a financial instrument that gives the holder the right, but not the obligation, to sell a certain underlying asset (e.g. a stock) at a predetermined price (the strike price) within a certain period of time.

Puts are usually purchased by investors who expect a decline in the underlying asset's price in order to protect themselves against losses or to profit from falling prices. If the underlying asset does indeed fall, the value of the put increases and the holder can sell it or exercise it to sell the underlying asset at the strike price. However, if the underlying asset rises or remains stable, the put may expire worthless and the buyer loses the premium paid.

Puts are often used as part of option strategies to hedge portfolios or to profit from market volatility.