Put Option

J.C. Penney and American Eagle Outfitters Inc. One common measure of put-option prices versus calls examines the pricing "skew" of bearish puts that are "out of the money" or not yet profitable, versus calls that are similarly out of the money. ❋ Brendan Conway (2010)

Brokers at Bank of America Corp. and Germany's Deutsche Bank AG have both noted a jump in demand among funds for put-option contracts, which grant the right, but not the obligation, to sell the euro in the future, according to broker documents obtained by The Wall Street Journal. ❋ Neil Shah (2011)

The intervention in March encouraged hedge funds to bet the yen would weaken, often by buying put-option contracts, which grant holders the right, but not the obligation, to sell the currency at a specific price in the future. ❋ Neil Shah (2011)

Having been burned in the financial crisis, the thought of so much as a put-option makes them queasy. ❋ Andrew Rosenbaum (2011)

But the put-option deal is no longer valid, because the financial investors accepted a Korea Development Bank-led private equity unit's plan to buy Daewoo Engineering. ❋ Kyong-Ae Choi (2010)

Kumho Industrial said two items prompted its debt to exceed its assets: two trillion won worth of non-operating costs due to a put-option contract related to Daewoo Engineering and a 99.7% drop in its operating profit to 554 million won in 2009. ❋ Kyong-Ae Choi (2010)

Kumho Industrial is part of the Kumho Asiana Group conglomerate, which has been struggling to repay overall debt after a potential put-option in one of its units, Daewoo Engineering ❋ Kyong-Ae Choi (2010)

Under a put-option contract, Kumho Industrial had been scheduled to buy back a combined 39.6% stake in Daewoo Engineering from 18 financial-institution investors at 32,000 won per share by mid-June this year. ❋ Kyong-Ae Choi (2010)

Buying put [options] is a way of [shorting a stock]; but it can also be used as a [hedge] against unpleasant surprises. ❋ Abu Yahya (2010)