May 10, 2025 · Investors and traders buy puts if they expect the price of the underlying asset to drop, allowing them to profit by selling or exercising the put.

Some investors buy puts to place a bet that a certain stock's price will decline because put options provide higher potential profit than shorting a stock outright.

In the protective put strategy, the investor buys enough puts to cover their holdings of the underlying so that if the price of the underlying falls sharply, they can still sell it at the strike price.

Mar 25, 2025 · Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

Sep 16, 2025 · It can be useful to think of buying puts as a form of insurance against a stock decline. If it does fall below the strike price, you’ll earn money from the “insurance.”

Feb 19, 2025 · Put options work as insurance policies for investors, offering the ability to limit potential losses during market uncertainty.

Jul 18, 2024 · Some investors prefer to buy puts on certain assets rather than shorting a stock since put options are potentially more profitable.

Aug 26, 2025 · Buying calls is one way to speculate on stock prices appreciating, and buying puts is a way to speculate on prices falling. Both strategies can also be used to hedge against unwanted price …

Jan 9, 2026 · Success with puts comes down to three key elements: choosing the right strikes, managing your costs, and having clear objectives. Whether you're protecting a portfolio or …

May 29, 2024 · Many investors sell puts on stocks they are happy to own and gladly accept payment in return. A short put option can be thought of as a limit order. For example, you might sell a put at a …