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put option


Definition

An option contract that gives the holder the right to sell a certain quantity of an underlying security to the writer of the option, at a specified price (strike price) up to a specified date (expiration date); here also called put.

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Suggestion For Options WritersIf you plan on writing an uncovered call option to sell to investors, be sure to look at put options in order to hedge against your losses too. Not only will this will give you extra insurance in case ... Read more

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