See Also: Writing puts to acquire stock(finance)
Writing puts to acquire stock(money)
Writing cash-secured puts(money)
Writing cash secured puts(finance)
Money stock(finance)
acquire(dictionary)
acquire(dictionary)
Tight money or dear money(finance)
WRITING(law)
writing(dictionary)

Writing puts to acquire stock (money)


Definition: [crh] Selling a put option at an exercise price that would represent a good investment by an Definition: rd=option+writer">option writer who believes a stock's value will fall, so that the writer cannot lose. If the stock price unexpectedly goes up, the Definition: n">option will not be exercised and the writer is at least ahead the amount of the premium received. If the stock Definition: loses value, as expected, the option will be exercised, and the writer has the stock at what he had earlier decided was originally a good buy, and Definition: he has the premium income in addition.