When it says buy, he's buying a put option. And the differne etween buying aPut option and selling a stock are night and day. So imagine if you wanted to insure a a position that made money. One of the ways you could do it is you can marry a put option to your stock  in which case, if the stock price goes down, you will be able to force someone to buy that stock from you at that higher price. Where where options get used, mostly is in gambling.

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