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Home » International Classifieds » United Kingdom Classifieds » Put Option

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Put Option (Trade)

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A put option is a secured way to that you buy an option when you think the price of a stock or index is going to go down. More specifically, a put option is the right to SELL 100 shares of a stock or an index at a certain price by a certain date. That "certain price" is known as the strike price, and that "certain date" is known as the expiry or expiration date.
Not a suddenly, buyers and sellers have different goals. Buyers hope that the price of the underlying instrument drops so they can sell at the best price, which is higher than the market price. This way, they could offset the price of the premium, and hopefully make a profit as well.
Basically, put options gives us the best market when it is going down. And thats the great thought process for most business investors to achieve satisfied profit.
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