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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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WEBApr 10, 2024 · 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...
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WEBFeb 10, 2024 · A put is an options contract that gives the owner the right, but not the obligation, to sell a certain amount of the underlying asset, at a set price within a specific time. The buyer of a...
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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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