put option

Put Option

1. An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

2. The act of exercising a put option.

Notes:

A put becomes more valuable as the price of the underlying stock depreciates.

See also: Bear, Call, Option, Short

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Put option

This security gives investors the right to sell (or put) a fixed number of shares at a fixed price within a given period. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.

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put option

See put.