By Brian M. Reiser Put options are financial contracts that give the holder the right – but not the obligation – to sell an underlying stock or asset at a specified price (the strike price) within a certain time period. Generally, when an investor buys a put option, they think the price of the underlying stock will go down, and the option holder will make money as the price of the underlying stock decreases.
You can buy put options to speculate on stocks going down in value and to magnify your returns, or you can sell the options if you’re bullish and think the price …read more
