OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Cash Secured Put'

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What is Cash Secured Put in Options Trading ?

Cash Secured Put
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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