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Put Option Buying Put Strategies
By Nick Hunter

What are Put Options?

A Put is a contract on a particular stock, index or other security that allows the investor to sell the underlying stock at a set price (strike price).

The holder of his option has paid a premium (cost of the contract) to buy it. Put options are profitable when the market is in decline. If the investor has a put on a stock that has now fallen enough to cover the cost of the premium, the person would be profitable.

Ways to Profit with Put Options
Trading them:

If the Put is profitable, the investor can sell or trade the contract back to the market. The profit on the contract is shown by the premium increase on the option. As the market decli...
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