Source: https://mochatrade.com/learn/glossary/put-option

# Put option
URL: https://mochatrade.com/learn/glossary/put-option
Last modified: 2026-10-17

A put option is the right to sell at the strike before expiry, so it gains when the price falls: insurance on a holding, or a short with the loss capped at the premium. When everyone is buying puts, [the fear is already in the price](https://mochatrade.com/learn/start-here/how-to-read-us-market-news); a [cash-settled short](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough) is the uncapped alternative.

## Related terms

- Option open interest: https://mochatrade.com/learn/glossary/option-open-interest
- Options contract: https://mochatrade.com/learn/glossary/options-contract
- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off
- Margin call: https://mochatrade.com/learn/glossary/margin-call
- Open interest: https://mochatrade.com/learn/glossary/open-interest
- Funding rate: https://mochatrade.com/learn/glossary/funding-rate

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.