put option
3
8.3
- noun
- /pʊt ˈɑpʃən/
- Specialized
:
opción de venta
- A put option gives investors the right to sell their shares at a fixed price, reducing potential losses in a declining market.
We've sold another put option which we've received money for.
- We've sold another put option which we've received money for.
- Always I've been proposing that mortgages should have put options on the House attached to them.
- Another simple contract, which is kind of dual to call option is a put option.
- You either buy put options or you sell it short.
- Now, there's a few reasons that the put option prices did this.
- You could do that by buying put options or you could also just short the stock.
- Now there are two types of options, call options and put options.
- He's like, well, maybe he's like, he taught me how to short Snapple put options, right?
- Yeah, you know, it could be really jazzy to scroll up and down Wall Street Bets and see every single person post their really profitable PUT options.
Examples
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In this context, hedging with put options is a more appropriate response.
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Selling put options is a great way to generate income.
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And so if I want insurance, I can buy a put option, right.
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The reason for the last result is that a put option is similar to an insurance policy, with the exercise price being the insured amount.
Academic text (1991) -
For example, some guys like Bury are buying put options, betting on the down move, right?
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If you buy a put option and the stock goes down you will make hundreds of percent, but if it goes up you will be wiped out.
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We've sold another put option which we've received money for.
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I should note that the bid-ask spread on the January 18, 2014, $270 put option is quite large.
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If I buy fire insurance on my house, then it's like buying a put option on my house, but it's only exercisable if there's a fire.
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Put options have been bought on British Pound (FXB) and Canadian Dollar (FXC). Put options have been sold on Japanese Yen (FXY).
Blog text (28)
Synonyms
48
9.0
An option that lets you sell a stock at a fixed price before a set date
Antonyms
- Specialized
2
7.7
A contract that lets someone choose to buy something of value at a set price for a limited time
Surface Forms
Morphology
The sense 'a right to sell' is directly built from 'put' (in finance, a right to sell) combined with 'option' (a contractual right), so the composition is logically transparent. However, the specialized financial sense of 'put' is not common B1 vocabulary and may be unknown to learners without exposure, so understanding is only partially reliable for an average B1 learner.
Etymology
The term put option may come from the old use of put meaning 'to place' and option meaning 'a right to choose'. Imagine you can 'place' your share on someone else at a fixed price, and this shows why a put option gives you the right to sell at a set price and so protects you if the price falls.