An options contract that gives the owner the ability to sell an underlying security at a pre-determined price within a pre-set time frame (also referred to as the “strike price”). However, it is not a requirement that the options contract holder buy at the strike price. A put option becomes more valuable as the price of the underlying stock decreases. Thus, put options are often used by traders as a way of managing risk and protecting themselves against downturns in the market.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Put.