What Is Buy Put Option -

This right is valid only until the contract's . To acquire this right, the buyer pays an upfront fee called a premium . Key Terminology

When you buy a put, you are essentially betting that the stock price will fall below the strike price before the expiration date. Example: Speculating on a Drop what is buy put option

The cost you pay to buy the option; this is also your maximum potential loss. This right is valid only until the contract's

Imagine stock XYZ is trading at $100. You believe it will drop soon. but not the obligation

A is a financial contract that gives the buyer the right, but not the obligation , to sell an underlying asset (like 100 shares of a stock) at a predetermined price, known as the strike price .