Monday, January 26, 2009

Put Option definition

an option contract giving the owner the right, but not the obligation to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option which gives the right to buy.... investopedia.com

The put option is used when you think that the stock is going down... like I said before.. remember these options expire on the 3rd Friday of the month.

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