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Chapter 2. Option Basics > Puts and Put Strategies

Puts and Put Strategies

The put is the opposite of the call. If you buy a put, you acquire the right (but not the obligation) to sell 100 shares of the underlying stock. If you exercise a put, you sell 100 shares at that strike price, even if the current market value of stock was far below that level. Like the call, the put expires at a specific date in the future.

As a put buyer, you have one of three possible outcomes:


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