by Michael Shulman 06/21/08
Q: I think I understand how a call option works -- I profit if the stock goes up. But how does a put work?
A: A put is the opposite position from a call. As the security decreases in price, you will profit. If the security moves up in price, then your put will likely lose value.
For more about playing falling stocks with put options, you may want to check out my video on OptionsZone TV, "The Short Trade."
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