For the privilege of fixing the price for the next sixty days he agrees to give the seller $1000.
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The premium you pay each month gives you the right to a benefit if some event in the future happens and you decide to exercise your right to have the insurance company pay you for that event.
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When you buy a put option it gives you the right but not the obligation to sell an underlying asset at a predetermined date.
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For every book that there is on making money trading there is probably an opposite book explaining why it can’t be done.
You might feel that the market is overheated at the present time and want to buy a put (right to sell) option.