Put Option
Categories: Derivatives, Stocks, Trading
See call option.
Whereas calls are the right to buy a security at a given time range and at a given price, a put is the right to sell a security at a given time range and at a given price (e.g., you may pay $5 a share for the right to sell IBM any time between now and November at $130 a share).
Using options effectively reduces your market risk... and allows you to take over the world.