What is cash-secured put?Cash-Secured Put

Selling a put while setting aside strike × 100 in cash; if not assigned you keep the premium, and if assigned you buy the stock at a cost of strike − premium.

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Cash-Secured Puts: Buying Stock at a Discount
Set aside the cash to buy the stock, then sell a put and collect the premium up front. If the price doesn't drop, you keep the money; if it does, you buy a stock you wanted anyway at a cost of strike − premium.

Related terms

margin
strike price
premium
assignment

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