S&P 500 · SPY
774.34
▲ +4.70 (+0.61%)
DOW JONES · DIA
511.83
▲ +0.73 (+0.14%)
NASDAQ · QQQ
754.80
▲ +5.22 (+0.70%)
GOLD · GLD
$378.78
▼ -1.36 (-0.36%)
OIL (WTI) · USO
$144.83
▼ -2.54 (-1.72%)
BITCOIN
$85,315.00
▲ +12.10 (+0.01%)
--:--:--
NYSE · Live ET

Put Option

What is Put Option?

A put option gives its holder the right, but not the obligation, to sell a stock at a set price by a certain date.

Why it matters

Puts rise in value as the stock falls, so investors use them to hedge or to bet on a decline. Like calls, they can expire worthless.

Related terms

Explore on Investz

Share this termEmailXLinkedInFacebookRedditWhatsApp

General education, not investment, tax or legal advice. Read our disclosures.