Exchange Currency

cash-secured put

A put option in which an investor writes a put contract and then deposits into the broker's account an amount equal to the put's strike price, in an event the option is exercised. The money deposited acts as a guarantee to the broker that the investor will be able to meet the conditions of the contract. Meanwhile, the deposit may be invested in short-term investment to yield interest.

Related information about cash-secured put:
  1. Cash-Secured Put
    Description. The cash-secured put involves writing an at-the-money or out-of-the- money put option and simultaneously setting aside enough cash to buy the ...
     
  2. CBOE - Equity Option Strategies - Cash-Secured Puts
    Instead of simply waiting for that to happen you could take an approach that is a little more pro-active and sell (write) a cash-secured put. You will be paid, in the ...
     
  3. Cash-Secured Put | Trading Put Options - The Options Playbook
    A cash-secured put involves selling an out-of-the-money put, with cash on hand to cover the purchase. Trading put options like this is straightforward for any ...
     
  4. A Look at Cash-Secured Put Selling - Seeking Alpha
    Jan 10, 2008 ... One way to play the income aspect of the Covered Call is through a strategy known as Cash-Secured Put Selling, which involves selling a put ...
     
  5. Cash-Secured Put - TradeKing
    How to write a cash-secured put. Get detailed strategy tips, setup guides and examples for trading cash-secured put options.
     
  6. Cash Secured Put - Ise.com
    Options Strategies: Cash Secured Put. According to the terms of a put contract, a put writer is obligated to purchase an equivalent number of underlying shares ...
     
  7. Selling / Writing Cash Secured Put Options & Covered Calls ...
    Feb 28, 2012 ... Create income by selling / writing Cash Secured Puts Options and Covered Calls . This tutorial, with spreadsheet examples, shows a sequence ...
     
  8. Value Investing World: Selling Cash-Secured Put Options
    Dec 28, 2011 ... Selling Cash-Secured Put Options. [This article is also posted on Seeking Alpha HERE.] Selling puts on stocks can be a good way to either ...