Put Option

Categories: Derivatives, Stocks, Trading

See call option.

Whereas calls are the right to buy a security at a given time range and at a given price, a put is the right to sell a security at a given time range and at a given price (e.g., you may pay $5 a share for the right to sell IBM any time between now and November at $130 a share).

Using options effectively reduces your market risk... and allows you to take over the world.

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