(redirected from put upon)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia.
Related to put upon: relieved, partially


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 ?
The Scottish mezzo-soprano asserted that she has always known that she had an unfair label put upon her as her condition made her different to her peers as a child and it made her even more determined to be where she wanted to be.
While, responsibility of incident has also been put upon media and masses.
I have written before about the demise of our industries, writing about big manufacturers pulling out of our city, but this stench Sisu has put upon the Coventry people will not go away.
non-proliferation and arms control officials visited Tokyo in mid-January to talk with senior Japanese government officials on how Tokyo might cooperate in imposing sanctions on Iran, but they didn't reach any significant agreement since Tokyo was aware of affects the sanctions would put upon Japan's economy.
Of recent 'official investigations' the blame for the Mull of Kintyre helicopter crash, which had originally been put upon the pilots, has been discredited.
As the owner of a small, functional car, I am one of those who are often put upon by drivers of bigger cars/ vehicles who often expect their 'lesser' road users to either give way or get out of it.
The energy authority is anticipating an increase in the country's electricity needs within the decade to fuel the gulf state's massive infrastructure development projects with the added impetus put upon it from its winning bid for the FIFA World Cup in 2022.
There is no other age group being put upon like the senior citizens of broken Britain.
CELTIC assistant manager Mark Venus is well aware of the intense demands that will be put upon him and manager Tony Mowbray at Parkhead next season.
The evocative illustrations show us a quite fearsome lion, and a woman who will not be put upon by lion or human.
Unity is a virtue, but there is a limit to the price to be put upon it.
This may have been a person who was put upon or put down as a child.