• What is a put option? Understanding how to trade them

    1 month ago - By Business Insider

    Those who buy put option contracts are essentially betting that the asset's price will fall.
    Witthaya Prasongsin/Getty
    Put options are contracts that allow investors to sell a specific number of securities at a predetermined price within a specified timeframe.
    They are bought when a trader expects the option's underlying asset to fall.
    In most cases, brokerage firms require that investors apply and be approved to buy options.
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