What does buying a put option do?

Buying a put takes the short position. You believe that the stock is going to go down in price. You sell the put for a profit once price has fallen. If price rises instead, then you take a loss. In other words, buying puts allows you to take a short position.

How and when to buy a put option?

Buy a Put Option when you are bearish about the prospects of the underlying. In other words, a Put option buyer is profitable only when the underlying declines in value; The intrinsic value calculation of a Put option is slightly different when compared to the intrinsic value calculation of a call option; IV (Put Option) = Strike Price – Spot Price

What does it mean to write a put option?

Writing put options, also referred to as selling the put options. As we know, the put option gives the holder the right but not the obligation to sell the shares at a predetermined price. Whereas, in writing a put option, a person sold the put option to the buyer and obliged himself to buy the shares at the strike price if exercised by the buyer.