A put option grants its buyer the right (but not the obligation) to sell shares of an underlying security on or before a specific expiration date at a particular strike price. A put option is an ...
A put option is a type of derivative that gains in value when the underlying stock moves lower. In other words, put options can be used to profit from a stock's decline -- somewhat akin to a short ...
If you're interested in options trading, one of the first things to learn is the difference between call and put options. You'll see these terms used all the time, so understanding them is a must.
A short put refers to when a trader opens an options trade by selling or writing a put option. The trader who buys the put option is long that option, and the trader who wrote that option is short.
A naked or uncovered option is a call (or put) written without the offsetting shares (or funds) necessary to fulfill the terms of the contract should it be exercised by its buyer. A naked or ...