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When To Buy A Put Option. Buying a put option gives you the right to sell a stock at a certain price (known as the strike price) any time before a certain date. That certain price is known as the strike price, and that certain date is known as the expiry or expiration date.
When you sell an option you earn money to accept an obligation. The purchase of a put option is interpreted as a negative sentiment about the future value of the. How does a put option work?
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You don't actually have to own the underlying stock to trade. In most cases you never intend on exercising your rights to sell the stock. In options trading, a buyer may purchase a short position (i.e. In finance, a put or put option is a financial market derivative instrument that gives the holder (i.e.