Buying a put is a bearish bet or a portfolio hedge — value rises when the underlying falls. Selling a put is a bullish or neutral position, obligating the seller to buy at the strike if assigned.
Cash-secured puts are a common way for investors to acquire stocks below current price while getting paid a premium for the commitment.
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Open Decision Lab →Frequently asked questions
Are puts always a hedge?
Only when held against a long position. On their own, they're directional bets.