What Is a 'Put Option' and How Does It Differ from a Call Option? ▴ Learn

What Is a ‘Put Option’ and How Does It Differ from a Call Option?

A put option is a financial derivative contract that grants the holder the right, but not the obligation, to sell an underlying asset at a specified strike price on or before a certain date. It differs from a call option, which grants the right to buy.

Put options are used to speculate on a decrease in the asset's price or to hedge against a decline in the value of an owned asset. The buyer profits if the market price falls below the strike price minus the premium.

How Do Traders Use Vega to Construct Volatility-Based Trading Strategies?

Define a “Call Option” and a “Put Option” in the Context of Cryptocurrency Trading

Explain the Difference between a Call Option and a Put Option in Crypto Derivatives

What Is a “Call Option” and a “Put Option,” and How Are They Used in Cryptocurrency Hedging Strategies?