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Safety.

If you short a stock, you borrow it, sell it, wait till the price drops and buy it back. Problem is, if you're wrong you lose money buying the stock back. And if the stock takes off like a rocket, you lose a ton of money.

If you buy a put (for this you normally get a naked put - one where you don't own the underlying stock), being wrong only costs you the premium.

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11y ago

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