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OptionsP
Put Option
An option contract giving the holder the right to sell the underlying asset at the strike price before expiration. Buyers profit when the underlying price falls below the strike.
Example
“A trader buys a $150 put option on AAPL for $4.00. If AAPL drops to $140, the put is worth at least $10 intrinsically, netting a $6 profit per share.”