by 
The Curious Bag
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A put is a type of option used by investors who anticipate a stock will fall in price much like a short position. Its opposite is a call, which is bought by investors who anticipate a stock will rise in price. A put gives the owner the right to sell a specified stock at a specified price for the period up until the option expires.
Features
A put will have a strike price, an expiration date and be for a specific stock. The strike price is the price at which the put gives the owner a right to sell. In an American style option, the put can be sold at any time before expiration and in the European style it must be held until the expiration date.
Significance
Puts and calls are two types of options, which are a highly leveraged method of investing in the stock market.
Considerations
Because calls and puts are highly leveraged methods of investing, they are riskier than ordinary stock trading through buying selling and shorting.
Potential
Options are considered a versatile type of investment allowing them to be conservative or speculative based on investor preferences.
Warning
Options are not a good choice for beginning investors because they are so risky.
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