Put Option

A put option contract (the inverse of a call option) is a specialized contract that is used in derivatives trading on occasion. It grants an investor the right, but not the obligation, to sell an underlying security (or cryptocurrency) at a predetermined price within a predetermined time frame. When the option contract expires, the investor has the option of selling the underlying security or allowing the option contract’s value to fall to zero. Put options can be used in conjunction with call options to create novel trading strategies.