puts
Options that profit when a stock's price goes down.
Definitions
Put options: contracts giving the right to sell a stock at a set price, profitable when the underlying falls. The bearish counterpart to calls.
puts In A Sentence
Origin & Usage
Standard options terminology; buying puts is the archetypal bearish play, mocked on bullish WSB.
People Also Ask
What are puts in trading?
Puts are put options — contracts giving the right to sell a stock at a set price. They profit when the stock falls, making them a bearish bet.
How do puts differ from calls?
Puts profit when a stock goes down; calls profit when it goes up. Buying puts is the bearish counterpart to buying calls.
Why are puts mocked on WSB?
r/WallStreetBets skews aggressively bullish, so betting against a stock with puts is often ridiculed as a way to lose money on a market that 'only goes up.'
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