Writing cash-secured puts

An option strategy to avoid using a margin account. Instead of depositing margin with a broker, a put writer can deposit a cash balance equal to the option exercise price, and can avoid additional margin calls.

Writing Cash-Secured Puts

The act of writing a put option with the intention to avoid a margin account. Because a put writer is obligated to buy the underlying should the option buyer exercise the option, the writer must have easily available cash in order to cover the exercise. Rather than borrowing this money from a broker, the writer deposits with the broker a cash amount equal to the exercise price of the option. This way, the option is immune to margin calls.

单词	writing cash-secured puts
释义	Writing cash-secured puts Writing cash-secured puts An option strategy to avoid using a margin account. Instead of depositing margin with a broker, a put writer can deposit a cash balance equal to the option exercise price, and can avoid additional margin calls. Writing Cash-Secured Puts The act of writing a put option with the intention to avoid a margin account. Because a put writer is obligated to buy the underlying should the option buyer exercise the option, the writer must have easily available cash in order to cover the exercise. Rather than borrowing this money from a broker, the writer deposits with the broker a cash amount equal to the exercise price of the option. This way, the option is immune to margin calls.
随便看	bankers trust australia limited bankers trust company bankers trust funds management bankers warranty group banker’s banker’s hours bankes banket bank exam bank examination bank examination report privilege act bank examinations bank examiner bank exams bank failure bank failure friday bank failures bank financial strength rating bank financial structure bank first play later bank for agriculture and agricultural cooperatives bank for cooperatives bank for foreign trade bank for foreign trade of the ussr bank for international settlement