Glossary · Options

Put option

The right to sell 100 shares at the strike price before expiration.

Why it matters

Puts gain value when the stock falls. They work like insurance for shares you own.

How to read it

A put is in the money when the stock is below the strike.

Related

Call optionThe right to buy 100 shares at the strike price before expiration.Strike priceThe price at which an option lets you buy (call) or sell (put) the shares.Protective putBuying a put on shares you own to set a floor under losses.

In the Cluenex app, this explanation opens next to every put option figure, with the live reading for the stock you are looking at. Open it in Cluenex