put option

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Explanation of "Put Option"

A put option is a financial term used in trading, especially with stocks and other investments. Here’s a simple breakdown:

Summary:

A put option is a way for investors to protect themselves from losses when they believe a stock's price will fall.

Academic

Noun

1. the option to sell a given stock (or stock index or commodity future) at a given price before a given date
2. an option to sell

Synonyms

• put