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.

In the protective put strategy, the investor buys enough puts to cover their holdings of the underlying so that if the price of the underlying falls sharply, they can still sell it at the strike price.

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.”

Feb 19, 2025 · Put options work as insurance policies for investors, offering the ability to limit potential losses during market uncertainty.

3 days ago · Learn what a put option is, how it works, and how it is used for hedging and speculation in financial markets.

Sep 3, 2025 · 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 …

Aug 26, 2025 · Buying calls is one way to speculate on stock prices appreciating, and buying puts is a way to speculate on prices falling. Both strategies can also be used to hedge against …

2 days ago · Before distinguishing between calls and puts, it is vital to remember the core principle of options: they grant the holder the right, but not the obligation, to transact an …

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.

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 …