(redirected from put to sleep)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
Related to put to sleep: euthanasia, put to bed, euthanised


An option granting the right to sell the underlying futures contract. Opposite of a call.

Put Option

An option contract in which the holder has the right but not the obligation to sell some underlying asset at an agreed-upon price on or before the expiration date of the contract, regardless of the prevailing market price of the underlying asset. One buys a put option if one believes the price for the underlying asset will fall by the end of the contract. If the price does fall, the holder may buy and resell the underlying asset for a profit. If the price does not fall, the option expires and the holder's loss is limited to the price of buying the contract. Put options may be used on their own or in conjunction with call options to create an option spread in order to hedge risk.


1. An option that conveys to its holder the right, but not the obligation, to sell a specific asset at a predetermined price until a certain date. In most cases, puts have 100 shares of stock as the underlying asset. For example, an investor may purchase a put option on GenCorp common stock that confers the right to sell 100 shares at $15 per share until September 21. Puts are sold for a fee by other investors who incur an obligation to purchase the asset if the option holder decides to sell. Investors purchase puts in order to take advantage of a decline in the price of the asset. Also called put option. Compare call. See also guarantee letter, synthetic put, transferable put right.
2. Sale of an issue of bonds before maturity by forcing the issuer to buy at par. Few bond issues permit the holder this option.
Putting things into perspective: How to hedge, using puts. How to speculate, using puts.

A put option has an inverse relationship to the underlying security. As the value of the stock increases, the value of the put decreases. Like calls, puts can be used for both hedging and speculation. Puts can be purchased in conjunction with stock ownership as a form of insurance (that is, a hedge) against downside loss on a stock. If the stock price declines, the put holder can either sell the put and keep the stock, or exercise the put and sell the stock at the put's strike price. In either case, the increased value of the option will offset the stock loss to some degree. If the stock price rises beyond a certain level, the put will expire worthless. In this case, the put holder will lose the premium paid for the option but will still participate in the upward stock movement. The break-even point occurs when the stock price advances beyond the put's strike price plus the premium. Puts also can be used speculatively without a position in the underlying security. Instead of selling a stock short, an investor who anticipates a decline in the price of a stock can buy an at-the-money put. If the stock price rises, causing the put to expire worthless, the maximum loss is the premium paid for the put. But if the stock price declines substantially, the investor could make profits that far exceed the initial cost of the put.

Henry Nothnagel, Senior Vice President—Options, Wachovia Securities, Inc., Chicago, IL


To force the seller of a put option to purchase shares of stock at the stipulated price. Puts are exercised by the owner only when the market price of the underlying stock is less than the strike price. Also called put to seller.
References in periodicals archive ?
Otherwise, it really is better to have them put to sleep rather than leave them to fend for themselves as this sort of thing is so often the result.
The six-year-old animal was taken to a vet by the RSPCA, but on Monday night he started having fits and it was decided he should be put to sleep.
But keep in mind that in our thought experiment the successor consciousness might be activated long after the original person was put to sleep, have very different physical and personal traits, and be somewhere else altogether.
The RSPCA said six of the cats died or were put to sleep by vets.
TWO bunnies found dumped in a neglected state in woodland on Teesside have had to be put to sleep by vets.
Ali said: "Regardless of many recent campaigns that a dog is for life many people still feel it is a suitable gift at Christmas and then find that, once the novelty of the puppy wears off and they realise what they have taken on, many of those dogs are then given up or taken to vets to be put to sleep.
Paddy, an 11-month old black and white greyhound, was handed in to Westway Vets in Stanley to be put to sleep by his trainer owner, who feared the dog would not be able to race again.
But when the mongrel was taken to the RSPCA after 80-year-old Claude's death, he was put to sleep.
A HAMSTER had to be put to sleep after being dumped on a doorstep with all four feet missing.
The creature would not eat for the first five days he was at the sanctuary and a vet visited on Sunday, with Lisa fearing the animal may have to be put to sleep.
We have more animals than is comfortable to home, so we will assess them and those that have been here for 18 months and have no chance of being homed we will put to sleep.
The claims were made last summer after the council put to sleep a stray dog that was found in Emley - despite offers from a charity to rehome it.