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What are Cash Secured Puts?

General Options

To set up a Cash Secured Put, a trader sells (short) an OTM Put at a strike price where you want to buy (long) 100 shares. A trader who wants to buy 100 shares of stock if and only if the stock price decreases to a certain price can short a Put at that price. The trader receives a credit to sell the Put and has the obligation to buy 100 shares at the strike price.