Puts

A put option gives the right to sell a stock at the strike price. Here is how puts profit when prices fall, how they can insure a stock you own and how to find a put’s breakeven.

How a put works

A put buyer profits if the stock falls well below the strike price before expiration. The most the buyer can lose is the premium. A put seller collects the premium but must buy shares at the strike if assigned, even if the stock has collapsed.

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