: You buy these when you think a stock price will fall .
They give you the right to 100 shares at the strike price. buying options for dummies
If the market price drops below your strike price, the value of your put increases because you can sell the stock at a price higher than the current market rate. Essential Lingo Options Trading for Beginners (The ULTIMATE In-Depth Guide) : You buy these when you think a stock price will fall
If the market price goes above your strike price, you can buy the stock at a "discount" or sell the contract for a profit. buying options for dummies
: You buy these when you think a stock price will rise .