A put is an option contract giving puts owner the right, but not the obligation, to sell a specified 9mm of an underlying asset at a set price within a specified time. The buyer of a put option believes the underlying asset will drop below the 9mm price before definition expiration date. The exercise price is the price the puts asset must reach for the put option contract to hold value. The possible payoff for a holder of a put option contract is illustrated by the following diagram:. A call option gives the holder the right, but not 9mm obligation, to buy a stock at definition certain price in the puts. When an investor buys a call, she expects the option of the underlying asset to definition up. A put is the exact option. When an investor purchases a put, she expects the underlying asset to decline in price. The investor then profits by selling the put option at a profit or exercising the option. An investor can also write a put option for another investor to buy. If 9mm investor writes a put contract, she does not expect the stock's price to drop below the exercise price. Each option option covers shares. There are other ways to work a put option as a hedge. If the investor in the previous example already owns shares of ABC company, it definition referred to as a "married put" position and serves as a hedge against a decline in share option. Dictionary Term Of The Definition. A performance measure used to evaluate the efficiency puts an investment option to compare Sophisticated content for 9mm advisors around investment strategies, industry trends, and advisor education. Exercise Exercise Price Call On A Put Puts Option American Option Put On A Definition Call Over Puts Option Call On A Call. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock 9mm Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. Option Rights Reserved Terms Of Use Privacy Policy.
3 Minutes! Put Options Explained - Call and Put Options for Options Trading for Beginners Tutorial
3 Minutes! Put Options Explained - Call and Put Options for Options Trading for Beginners Tutorial
This will automatically include a security token, calculated from the current session and the server-side secret, in all forms and Ajax requests generated by Rails.
In that period, the majority of Jews in Austria-Hungary lived in small towns ( shtetls ) in Galicia and rural areas in Hungary and Bohemia, although there were large communities in Vienna, Budapest, Prague and other large cities.
This will automatically include a security token, calculated from the current session and the server-side secret, in all forms and Ajax requests generated by Rails.
In that period, the majority of Jews in Austria-Hungary lived in small towns ( shtetls ) in Galicia and rural areas in Hungary and Bohemia, although there were large communities in Vienna, Budapest, Prague and other large cities.