Where you “put” options on high or low before a date

A put option is a right but not obligation to sell the underlying asset at the strike price at maturity. One put option contains 100 shares of the underlying asset. A put option can be an effective tool for managing risk and uncertainty. Using a protective put one can hedge the potential downside risk of the portfolio, with only giving up a small portion of the upside potential, which is the premium paid for the option(s). This is known as the breakeven point.