What are put options?
A put option secures the right to sell the underlying asset. If a stock owner believes a stock price is going to drop in the future, he or she may try to secure a put option. A put option may also be sold short naked or as part of a position. When selling a put option the seller has the obligation of taking possession of the underlying security.
Selling a put is a great way to either gain some income from an increase in volatility in a down market that is nearing oversold or capture shares at a discount via the sale should the underlying move through the downside strike.?
Here’s one story of put buying:?A look at a lot of Intel put buying