Mechanics
·
10 min
The short put: cash-secured and naked
Selling a put collects premium for the obligation to buy at the strike. With cash backing it, the worst case is owning shares cheap. With margin, the worst case is operational.
In this lesson
- Cash-secured: the entry door
- Assignment as a feature
- Naked: secured by margin
- The "stocks you actually want" rule
- Strike selection by delta
Read the full lesson in the app
The complete lesson, with worked examples, callouts, and a quiz to test yourself, is in Iron Condor Options.
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