Basics
Put Option
Right to sell shares at strike price
What is Put Option?
Put Option A contract giving the holder the right to sell 100 shares at the strike price before expiration. Put buyers are bearish; put sellers are neutral to bullish.
Complete Definition
A contract giving the holder the right to sell 100 shares at the strike price before expiration. Put buyers are bearish; put sellers are neutral to bullish.
Example
Buy AAPL $150 put for $3. If AAPL drops to $140, your put is worth at least $10 (intrinsic value).
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