May 10, 2025 · Investors and traders buy puts if they expect the price of the underlying asset to drop, allowing them to profit by selling or exercising the put.

Puts may also be combined with other derivatives as part of more complex investment strategies, and in particular, may be useful for hedging. Holding a European put option is equivalent to holding the …

Sep 16, 2025 · It can be useful to think of buying puts as a form of insurance against a stock decline. If it does fall below the strike price, you’ll earn money from the “insurance.”

2 days ago · Success with puts comes down to three key elements: choosing the right strikes, managing your costs, and having clear objectives. Whether you're protecting a portfolio or speculating on a …

Mar 25, 2025 · Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

Aug 26, 2025 · Learn about fundamental options strategies like call and put options and how options-approved traders can include basic options strategies in their portfolios.

Investors do not need to own the underlying asset for them to purchase or sell puts. The buyer of the put has the right, but not the obligation, to sell the asset at a specified price, within a specified time frame.

May 29, 2024 · Many investors sell puts on stocks they are happy to own and gladly accept payment in return. A short put option can be thought of as a limit order. For example, you might sell a put at a …

Jan 2, 2026 · Learn what a put option is, how it works, and how it is used for hedging and speculation in financial markets.

Some investors buy puts to place a bet that a certain stock's price will decline because put options provide higher potential profit than shorting a stock outright.