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.

Puts may also be combined with other derivatives as part of more complex investment strategies, and in particular, may be useful for hedging. Holding a European put option is equivalent to holding the …

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.

Aug 26, 2025 · Learn about fundamental options strategies like call and put options and how options-approved traders can include basic options strategies in their portfolios.

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

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.”

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

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 …

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.

Nov 3, 2025 · Options are contracts that give investors the option to buy or sell a security at a specific price. Learn everything you need to know about options on eToro.