A contract that gives the buyer the right, but not the obligation, to sell an underlying asset at a fixed price before expiry.
A put option is a derivatives contract that gives the buyer the right, but not the obligation, to sell a specified quantity of an underlying asset at a predetermined strike price on or before the expiry date. Traders buy put options when they expect the price of the underlying to fall. The maximum loss for a put buyer is limited to the premium paid, while profit increases as the underlying price falls toward zero.
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