Build a Short Put Strategy
What is a short put?
BullishLimited ProfitNearly Unlimited Loss
A simple but risky strategy which results in an initial credit. By selling a put, you are liable to buy 100 shares of the underlying stock at strike price A if assigned. Because of this, you should be okay with buying the stock at such a price. If it expires above strike A, you simply keep the full credit.
(also known as: Naked Put)
- Sell a put at strike A