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Investment
Put Option
A contract that gives you the right (but not the obligation) to sell a stock at a fixed price before a certain date.
Put options are used to protect portfolios or to bet on falling prices. Like calls, they give leverage and have limited risk (you only lose the premium paid). They are popular during uncertain or bearish markets.
It's insurance against the price falling — you can sell at the higher strike price even if the market crashes.
Real world: You own 100 shares of a stock at £80. You buy a put option with a £75 strike. If the stock drops to £50, you can still sell at £75 using the put, protecting most of your money.
💡 Put options are the best way to protect yourself or profit when you think a stock will drop.