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.

Use put option in a sentence

You may want to try and find a way to make it a put option when you are thinking about getting rid of a security.

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You should try to make sure that you understand how a put option will work and try to get the most you can out of it.

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My hedge fund manager was not upset about the fall in stock market prices because he had bought a put option on a lot of companies that allowed him to make money when prices fell.

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