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hey everyone welcome back to the channel in todays video were going to continue talking about trading options and in this video specifically were going to talk about buying put options in the event you want to check out all my videos on trading options in the order i filmed them check out the playlist down below but a quick recap is that an options contract is an agreement between a buyer and a seller and one person thinks the stock price is going to go up in the future one person thinks its gonna go down and i feel like with buying a call option this is a lot easier to understand you are buying a contract for the right to buy a hundred shares of stock from this person if the price is favorable to you but for buying a put contract this is a little bit more confusing how do you make money when the stock price goes down thats counter intuitive so once again for buying a call option you have the right to buy stock from the seller the seller is pre paid a premium in order to have this