Glossary · Options

Cash secured put

Selling a put while holding the cash to buy the shares at the strike.

Why it matters

You are paid to wait for a lower price. If the stock falls below the strike, you buy shares you already wanted, at a discount.

How to read it

Only use on stocks you would happily own at the strike.

Related

Put optionThe right to sell 100 shares at the strike price before expiration.Covered callOwning 100 shares and selling a call against them for income.

In the Cluenex app, this explanation opens next to every cash secured put figure, with the live reading for the stock you are looking at. Open it in Cluenex