How To Buy And Sell Put Options -

A put option is a financial contract that gives the buyer the , but not the obligation, to sell 100 shares of an underlying asset at a specific strike price on or before a set expiration date .

Buying and selling put options are foundational strategies used to profit from market downturns or generate steady income. While they are two sides of the same contract, their risks, rewards, and strategic intents are diametrically opposite. I. The Mechanics of a Put Option how to buy and sell put options

Buying a put (long put) is a strategy. Investors use it for two primary reasons: A put option is a financial contract that