What are Put Options?

February 28, 2023 - 2:46 pm EST

Put options are the mirror image of call options, whereby the holder expects the price to drop. As the underlying stock value drops, the put options increase in value, enabling in theory for the holder to sell the underlying stock first, then buy them back at the lower price. In reality, the idea is to trade the option rather than exercise them for the underlying stock.

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