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Put writing
Put writers typically sell puts below the market, as an effort to either acquire a stock at a price below current market prices, or get paid while they wait by pocketing the option premiums they received when the put options expire worthless. Put writers should like the stocks they sell the puts on, as they are incurring the obligation to buy the stock at a certain price up until that option's expiration.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: Funds
- Company: Merrill Lynch
- Product:
- Acronym-Abbreviation:
Other Languages:
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