PUTS Meaning and
Definition
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Puts (noun) refers to a type of financial option contract in the field of stocks and commodities trading. It grants the holder the right, but not the obligation, to sell a specific quantity of an underlying asset at a predetermined price (known as the strike or exercise price) within a specified period of time. This financial instrument is known as a put option and is typically utilized as a hedging strategy to protect against potential downward price movements of the underlying asset. Puts can provide investors with an opportunity to capitalize on the decline of an asset's value, as they enable the option holder to sell at a price higher than the market value.
The intrinsic value of a put is contingent upon the difference between the current market price of the underlying asset and the exercise price. If the market price is lower than the strike price, the put option will hold intrinsic value and the holder may choose to exercise their right to sell the asset at the predetermined price. Conversely, if the market price exceeds the exercise price, the put option will be considered out-of-the-money and the holder may choose to let the option expire without exercising it.
Puts are commonly traded on various financial markets and play a crucial role in risk management strategies, portfolio diversification, and speculation.
Top Common Misspellings for PUTS *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for PUTS
Etymology of PUTS
The word "puts" can have multiple etymologies depending on its context. Here are a few possible origins:
1. As a form of the verb "put":
- Old English: The word "put" is derived from the Old English "putian" or "potian", meaning "to thrust, push, or put".
2. As a financial term in options trading:
- Puts in options trading come from the noun "put" meaning "an option to sell a share or other asset at a fixed price within a fixed time".
It is important to note that the word "puts" can have different meanings and etymologies based on its context.
Idioms with the word PUTS
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(one) puts (one's) pants on one leg at a time
The idiom "(one) puts (one's) pants on one leg at a time" means that everyone, regardless of their status, wealth, or abilities, is fundamentally the same. It is a reminder that everyone goes through the same basic human experiences and processes, and no one is inherently superior to others. It emphasizes equality and the idea that no one should be idolized or treated differently based on superficial factors.
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He puts his pants on one leg at a time
The idiom "He puts his pants on one leg at a time" means that someone is just as ordinary as everyone else, possessing no special privileges or abilities. It emphasizes that the person being described is not superior or above anyone else in any way.
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puts (one's) trousers on one leg at a time (just like everybody else)
The idiom "puts (one's) trousers on one leg at a time (just like everybody else)" means that someone does something in the same ordinary way as everyone else. It emphasizes that no matter who someone is or what their status is, they are still a regular person who goes through the same daily routines as everyone else.
Similar spelling words for PUTS
Conjugate verb Puts
CONDITIONAL
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would put
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FUTURE
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FUTURE PERFECT
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PAST
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PRESENT
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put
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puts
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PRESENT PERFECT
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have put
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am putting
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