Cash-Secured Put
Also called: cash secured put, selling puts
A cash-secured put is selling a put while holding enough cash to buy the shares if assigned. It's the standard way to get paid for a limit order: you collect the premium, and either the stock stays above the strike and you keep it, or you buy at a strike you were happy with anyway. The risk is not the assignment but the scenario behind it — you buy a falling stock, and the premium is small consolation if it keeps falling.
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