Put option
put
An option giving the holder the right to sell the underlying at a fixed strike price by expiry.
Put buyers pay premium for downside protection or short exposure. Put sellers collect premium and take on the obligation to buy at strike if exercised. Cash-secured puts on stablecoin pairs are a recurring theme in volatility-harvest products.
Related terms
- OptionA derivative giving the holder the right (not obligation) to buy ([[call-option]]) or sell ([[put-option]]) at a fixed price by expiry.
- Call optionAn option giving the holder the right to buy the underlying at a fixed strike price by expiry.
- Strike priceThe price at which an option holder can exercise the right to buy (call) or sell (put) the underlying.