Selling (writing) a put option allows an investor to potentially own the underlying security at a future date and at a more favorable price. But it comes with some risk.
Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the ...
To initiate a short straddle, you will sell (to open) one put option, and simultaneously sell (to open) one call option. Both options will be based on the same underlying stock, and will share the ...
What is a Put Option? A purchase of a put option allows you the right to sell the underlying at a strike price. You can use puts to protect a long position from a price decline, but you can also ...
Selling put options on high-quality stocks is our favorite way to generate yield. By doing so, you can achieve flexibility, higher returns, and reduced volatility vs. traditional approaches.