As already mentioned in previous topics, a put option is an option contract which provides the selling rights to the buyer which gives the buyers privilege to sell a particular derivative like a stock, at a certain price and these contracts come with expiry dates. However, there is no obligation for the buyer to do the same. But the \u2018put option’ seller has to buy the asset when the put buyer starts exercising their option.<\/p>\n
The investors who purchase \u2018put\u2019 option are the ones who are determined that the underlying asset\u2019s price will decrease. Likewise, they sell puts once they know that the underlying assets will increase.<\/p>\n
Concept of PUT option<\/strong><\/p>\n If the option expires profitable, the option stands a chance of being exercised. Vice versa if the option expires unprofitable, then the money paid for the option is particularly lost.<\/p>\n When you buy a put option, you bet that the value of the underlying stock will decrease. And when you sell a put option, you place a bet that the value of the underlying stock will increase.<\/p>\n <\/p>\n