What is a Put option?

Put options are different types of perks, an investor could decide to buy certain options and by this he will get rights by which he will be able to sell his shares on a specific price. Whenever an investor buys an option it’s known as a call he only pays a one time premium which is a fractions what the normal stock is worth. For example if the stock is worth $100 and the and if you buy an option which let’s the investor to purchase 100 shares at the strike price which is set to $115 then when the price goes over $115 then the investor can buy 100 shares for $115 even thought the stock price could be over $115. If the stock price doesn’t go above the strike price in the given time limit then the investor doesn’t have to exercise his right and his only loss would be the premium what he has paid in advance. If the investor wants to cancel his option then he can buy an offsetting option.