A put option (put) that is not tradable- but rather is part of an instrument or structure, granting its holder a right to put (i.e., convert an instrument into other forms or return it to its issuer against a consideration), usually if specific conditions are met. Such a put option can be embedded in a debt instrument, an equity instrument, or a hybrid instrument, or even in more complex structures and arrangements (generally, a host contract). Embedded options are by nature not tradable- that is, cannot be separated from the host contract by the issuer.

In a put bond (puttable bond), the embedded put option grants the bondholder the right, without the obligation, to put the bond back to the issuer at par before expiration. It is usually subject to a lockout period, a period during which the bond cannot be put back (and the put option is not exercisable). Bonds with embedded put options are mostly European-style, but such bonds can also be Bermudan-style (but not American-style).