What "put option" means in finance

A put option is a financial contract that gives the owner the right, but not the obligation, to sell an underlying asset at a specific price (strike price) within a certain period of time. Put options are commonly used to protect against a drop in the price of an asset or to speculate on a decline in its value. When the owner of a put option exercises their right to sell, the seller of the option is obligated to buy the asset at the agreed-upon price. Put options are commonly traded on stocks, commodities, and other financial instruments.