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How put options work
- When you buy a put option, you're placing a bet that the value of the underlying stock will decrease in value over the course of the contract.
- When you sell a put option, you're placing a bet that the value of the underlying stock will increase or stay the same value over the course of the contract.
www.nerdwallet.com/article/investing/put-options- People also ask
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WebNov 16, 2022 · Buying put options is a way to hedge against a potential drop in share price. They could also reap profits from bear markets or declines in the prices of individual stocks. You should also understand …
WebAug 23, 2023 · A put option is a contract that gives the owner the option to sell a security for a specified price in a set amount of time. Learn more about how buying and selling a put works.
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