Put Option Writer Buyer < Exclusive Deal >

The financial outcomes for each party are diametrically opposed based on the movement of the underlying stock price. Put Option: What It Is, How It Works, and How to Trade

: Pays an upfront fee, known as the premium , for the right—but not the obligation—to sell an asset at a specific strike price before the contract expires. This is often used as "insurance" against a falling market. put option writer buyer

: Receives the premium upfront but takes on the obligation to buy the asset at the strike price if the buyer chooses to exercise their right. Profit and Loss Comparison The financial outcomes for each party are diametrically