Morning ablutions and other responsibilities. by Daniel R. Levitan. This morning a phrase popped into my head â âmorning ablutionsâ. I do not believe that I have heard that phrase used in the past thirty or forty years; certainly it is not a common expression these days. But I was pleased that my mind was still functioning, even if in somewhat unpredictable ways.
Definition of 'Put Option'. Definition: Put option is a derivative contract between two parties. The buyer of the put option earns a right (it is not an obligation) to exercise his option to sell a particular asset to the put option seller for a stipulated period of time.
Buying Put options involves just that, buying only the Put option. When you buy only the Put option it completely changes the dynamics of the trade. You want the stock price to fall because that is how you make your profit. In most cases you never intend on exercising your rights to sell the stock.You just want to benefit from the movement of the stock without having to own the stock, and you can do this with Put options. A put option locks in the selling price of a stock. Put option gives its buyer the right, but not the obligation, to SELL shares of a stock at a specified price on or before a given date. Buying ONLY Put's should not be confused with Married Puts or Protective Puts.