Short Put
Options strategy · Level 3 · Spreads & short options
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Sell a put and collect the premium. You are paid to promise to buy 100 shares at the strike if the stock falls below it.
Where Tradecraft teaches it
Level 3 · Spreads & short options, in the lesson “Selling options: short puts & the wheel”: Why uncovered selling usually needs a higher approval level, the short put, cash-secured puts and the wheel.
Related terms
- Short Iron CondorA short put spread plus a short call spread.
- Cash-secured putSelling a put while holding enough cash to buy the shares if assigned, typically strike × 100 (some brokers count the premium toward it), so no…
- Short premiumBeing a net seller of options: you collect money up front and profit if the options lose value through time decay, falling implied volatility or the…
- The wheelIncome cycle: sell cash-secured puts; if assigned, sell covered calls on the shares; if they are called away, start again with puts.
- Calendar Spread – DebitSell a near-term option and buy a longer-term option at the same strike.
- Diagonal Spread – Short leg expires firstSell a near-term option and buy a longer-term one at a different strike — part calendar, part vertical.