Options Glossary

Glossary: Cash Secured Put

Last Updated: July 12, 2015


Cash Secured Put

What Does Cash Secured Put Mean in Options Trading?

A fully covered short put option by cash is known as a Cash Secured Put. It involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. Bullish investors profit if the option expires out-of-the-money or take assignment of the stock at the lower price to fit their overall view and strategy with regards to the underlying security.

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