Covered Put

[sunandaC]

Neutral to slightly Bullish

There are two key motivations for employing this strategy:

either as an attempt to purchase underlying shares below current market

price, or to collect and keep premium from the sale of puts which expire

out-of-the-money and with no value. This strategy can become

speculative when more puts are written than the equivalent number of

shares desired to own.

 

[rosemarry2]

Neutral to slightly Bullish

There are two key motivations for employing this strategy:

either as an attempt to purchase underlying shares below current market

price, or to collect and keep premium from the sale of puts which expire

out-of-the-money and with no value. This strategy can become

speculative when more puts are written than the equivalent number of

shares desired to own.

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