Put Option — Writer Buyer

In a put option contract, the and the writer (seller) occupy opposite sides of a financial agreement, creating a "zero-sum" relationship where one party's profit is the other's loss. The Core Roles

: 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

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 In a put option contract, the and the