Puts
Puts
Put options
are the exact opposite of calls in that calls give the bearer the right to buy stock at
a predetermined price, whereas puts give the bearer the right to sell his or her stock at a
predetermined price. Please note that the bearer of a put has the right, but not the obligation,
to sell those shares.
Plain English
A put grants the bearer the option of selling stock at a predetermined price in the
future, regardless of the stock's actual market value at that time.
