Skip to main content
Options and Futures

Uncovered put writing

A knowledgeable professor in finance would define a short put option as a position in which the writer does not hold a corresponding short position in the underlying security. This means that the writer has not deposited cash or cash equivalents equal to the exercise value of the put in a cash account. In simpler terms, this strategy is used to generate income from the premiums received without actually owning the underlying security.

Related terms

Runners

Understand the meaning and definition of Runners in the context of stock market, trading, and investments.

MORE
Stop Order (Stop)

Understand the meaning and definition of Stop Order (Stop) in the context of stock market, trading, and investments.

MORE
Closing Range

Understand the meaning and definition of Closing Range in the context of stock market, trading, and investments.

MORE
Registered Representative

Understand the meaning and definition of Registered Representative in the context of stock market, trading, and investments.

MORE
Settlement Price

Understand the meaning and definition of Settlement Price in the context of stock market, trading, and investments.

MORE
Clearing Member

Understand the meaning and definition of Clearing Member in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91