Put Options Basics: How to Protect a Position or Earn a Profit If a Stock Price Declines

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What is a put option? A put option gives the purchaser the right but not the obligation to sell 100 shares of the underlying stock for a set price, the strike price of the option. This is true except at expiration, when a “long-in-the-money put option” is automatically exercised by the Options Clearing Corporation unless you instruct your broker not … Read More