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  2. Put options involve two primary participants: the buyer and the seller (also known as the writer), each with distinct objectives. Buyers pay a premium to acquire put options, while sellers receive the premium as compensation for potentially purchasing the underlying asset if the option is exercised.
    www.kiplinger.com/investing/options/what-are-put-options
    www.kiplinger.com/investing/options/what-are-put-options
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    Can a buyer sell a put option?The buyer has the right to sell the puts, while the seller has the obligation and must buy the puts at the specified strike price. However, if the puts remain at the same price or above the strike price, the buyer stands to make a loss. Thank you for reading CFI’s guide on Put Option.
    What is a put option?A put option (or “put”) is a contract giving the option buyer the right, but not the obligation, to sell—or sell short—a specified amount of an underlying security at a predetermined price within a specified time frame. This predetermined price at which the buyer of the put option can sell the underlying security is called the strike price.
    What happens if a put seller sells an option?Put sellers sell options with the hope that they lose value so that they can benefit from the premiums received for the option. Once puts have been sold to a buyer, the seller has the obligation to buy the underlying stock or asset at the strike price if the option is exercised.
    When would a trader sell a put option?Traders would sell a put option if they are bullish on the asset's price and sell a call option if they are bearish on the price. "Writing" refers to selling an option, and "naked" refers to strategies in which the underlying security is not owned and options are written against this phantom security position.
    What's the difference between a put option and a sell option?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.
    When should you buy a put option?As we can see, the profit increases as and when the price decreases in the spot market (with reference to the strike price of 18400). Generalization 1 – Buyers of Put Options are profitable as and when the spot price goes below the strike price. In other words, buy a put option only when you are bearish about the underlying
     
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    WebAug 23, 2023 · Because the put option is a contract, there are two parties: a buyer and a seller. The seller, sometimes called a writer, gives the right to the buyer to sell the stock for a defined value. This...

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    Web6 days ago · A put option gives the buyer of the option the right, but not the obligation, to sell the stock at the option's strike price. Every option has an expiration date or expiry. There are...

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    WebMay 23, 2024 · Buying a put option gives the owner the right to sell the underlying security at the option exercise price. This is considered to be a bearish bet: The owner makes money when the security...

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