# Is Investopedia wrong on put options?

**URL:** https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188
**Category:** Coffee
**Created:** [March 14, 2024, 8:29pm UTC](https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188 "2024-03-14T20:29:56Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![ma0](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/ma0/32/3259_2.png) [@ma0](https://forum.mustachianpost.com/u/ma0)
#### Post date: [March 14, 2024, 8:29pm UTC](https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188/1 "2024-03-14T20:29:56Z")

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I’m learning about put options, just for the sake of it for now.  
I might try it to buy VT just for fun. So right now I’m a noob. Expect to see another post soon-ish with proper questions.

Right now I see this on google:

 ![Screenshot from 2024-03-14 21-18-06](https://forum.mustachianpost.com/uploads/default/original/2X/6/688c2c8225abb2de2a2103110d8c8bd86f966aa5.png)

So. What I know:

1. Put options: the right to sell at a price, if you buy one.
2. Selling put options. The right to buy at a price.

So if I read the screenshot above, the first highlighted sentence is wrong. I can BUY the options. It seems like the answer is given to the wrong question. It should be “What happens if I buy a Put option…?”

Is my english getting worst or what?

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### Author: ![weirded](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/weirded/32/14916_2.png) [@weirded](https://forum.mustachianpost.com/u/weirded)
#### Post date: [March 14, 2024, 9:04pm UTC](https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188/2 "2024-03-14T21:04:51Z")

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> [@ma0](#):
>
> So if I read the screenshot above, the first highlighted sentence is wrong. I can BUY the options. It seems like the answer is given to the wrong question. It should be “What happens if I buy a Put option…?”

Yes, there is a typo. You can excercise the option if you are the owner → if you buy it.

If you sell you may get exercised.

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### Author: ![Dr.PI](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/dr.pi/32/5299_2.png) [@Dr.PI](https://forum.mustachianpost.com/u/Dr.PI)
#### Post date: [March 14, 2024, 9:47pm UTC](https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188/3 "2024-03-14T21:47:49Z")

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What could be is that they are both correct BUT what is confusing is that the first paragraph starts with you selling the put, and then continue with what **your opposite number** has a right to do.

> [@ma0](#):
>
> Selling put options. The right to buy at a price.

No. By selling a put you take an **obligation** to buy at the strike price if the put buyer decides to exercise his **right** to sell at the strike price. If you think about it, it can’t be otherwise.

Nevertheless I have read once how IB decides which puts get executed, and basically it’s a lottery.

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### Author: ![Mirager](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/mirager/32/12344_2.png) [@Mirager](https://forum.mustachianpost.com/u/Mirager)
#### Post date: [March 14, 2024, 11:00pm UTC](https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188/4 "2024-03-14T23:00:40Z")

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I once read the following about options which made them clear once and for all: the cost of the premium buys the **buyer** the **right** but no **obligation** to either buy or sell at the strike price, the **seller** takes on the **obligation** to buy or sell for the cost of the premium.

I don’t think Investopedia is wrong, it’s just poorly written because it starts by talking about the seller and then switches to the buyer of the option.

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### Author: ![ma0](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/ma0/32/3259_2.png) [@ma0](https://forum.mustachianpost.com/u/ma0)
#### Post date: [March 15, 2024, 7:53am UTC](https://forum.mustachianpost.com/t/is-investopedia-wrong-on-put-options/12188/5 "2024-03-15T07:53:15Z")

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Here is the link btw:

> **[When Is a Put Option Considered to Be "In the Money"?](https://www.investopedia.com/ask/answers/042115/when-put-option-considered-be-money.asp#:~:text=What%20Happens%20If%20I%20Sell%20a%20Put%20Option%20%22In%20the%20Money)**
>
> An in the money put option occurs when the current market price of the underlying security is below the strike price of the put option. Learn more here.

The first sentence is the title of the paragraph!

 ![image](https://forum.mustachianpost.com/uploads/default/original/2X/4/4468d78eb3b1069739f4ac202bfb22f2c342a2da.png)
