Put Options - A Put option buyer has right to Sell the underlying asset at a certain price (Strike Price) within a specific time frame. They are similar to having a short position in the underlying asset or the futures contract of the asset. The buyer of a Put option will make money if the price of the asset goes down. On the contrary a Put Option seller has the obligation to buy the underlying asset at the strike price within a specific time frame. The seller will make money equivalent to the premium amount if the option contract lapses else he can make unlimited losses as the underlying asset goes down.