put option (Meaning)
put option (n)
an option to sell
the option to sell a given stock (or stock index or commodity future) at a given price before a given date
Synonyms & Antonyms of put option
No Synonyms and anytonyms found
put option Sentence Examples
- As an investor, you have the choice to purchase a put option to protect your portfolio from potential downside risk.
- He decided to buy a put option on the stock to hedge against potential losses if its price were to decline.
- A put option gives the holder the right, but not the obligation, to sell a specified asset at a predetermined price within a specified timeframe.
- Investors often use put options as a form of insurance against adverse movements in the market.
- She exercised her put option when the stock price dropped below the strike price, allowing her to sell the shares at a higher price.
- The put option became more valuable as the stock price continued to decline, providing a profit for the option holder.
- Traders can profit from a put option if the price of the underlying asset falls below the strike price by expiration.
- He decided not to exercise his put option because the stock price remained above the strike price, resulting in the option expiring worthless.
- Put options are commonly used in bearish market conditions to capitalize on expected downward movements in asset prices.
- Investors can utilize put options to implement various trading strategies, including hedging, speculation, and income generation.
FAQs About the word put option
an option to sell, the option to sell a given stock (or stock index or commodity future) at a given price before a given date
No synonyms found.
No antonyms found.
As an investor, you have the choice to purchase a put option to protect your portfolio from potential downside risk.
He decided to buy a put option on the stock to hedge against potential losses if its price were to decline.
A put option gives the holder the right, but not the obligation, to sell a specified asset at a predetermined price within a specified timeframe.
Investors often use put options as a form of insurance against adverse movements in the market.
