In the world of finance and investment, options play a crucial role in providing flexibility and risk management for traders and investors. Among the various types of options, a “put option” is one of the most commonly used derivatives. This article explores what put options are, their mechanics, and the key distinctions between buying and selling them. Put options are financial contracts that give the holder the right, but not the obligation, to sell a specific underlying asset at a predetermined price (known as the “strike price”) on or before a specified date (known as the “expiration date”). The underlying asset can be a stock, an index, a commodity, or even another financial instrument. Put options are primarily used as insurance against potential price declines in the underlying asset or as a means to profit from a bearish market outlook. When an investor buys a put option, they are acquiring the right to sell the underlying asset at the strike price before the option’s expiration date. Buying a put option is essentially a bet that the price of the underlying asset will decrease significantly within