Put option
A put option gives its holder the right to sell a stock at a set price by a set date — often used to bet on a decline or to protect against one.
A put option gives the buyer the right to sell 100 shares of a stock at a fixed strike price until expiration, for an upfront premium. A put generally gains value if the stock falls below the strike, so buying puts is a way to bet on a decline or to insure a stock you own against a drop — a protective put acts like a price floor.
As with calls, the buyer’s loss is limited to the premium, but options decay in value over time and can expire worthless. Selling puts, by contrast, obligates the seller to buy the stock if it falls, exposing them to large losses — one reason options require care and experience.
stocks-llm is a company-research tool and does not offer or track options. This definition is educational only, not advice to trade puts.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.