A put option is a contract that gives you the right, but not the obligation, to sell an asset at a specific price within a set time period. Put options are one of the two basic types of options—the opposite of call options—and understanding them is essential for anyone looking to trade options or protect their portfolio.
In this guide, I'll explain put options using a simple real-world analogy, then show you how they work with actual stock examples.
Related To: Options Basics
A call option is a contract that gives you the right, but not the obligation, to buy an asset at a specific price within a set time period. Call options are one of the two basic types of options (the other being put options), and understanding them is essential for anyone looking to trade options. In this guide, I'll explain call options using a simple real-world analogy, then show you how they work with actual stock examples.
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