www.tastylive.com/concepts-strategies/cash-secured-put#how-does-a-cash-secured-put-options-strategy-work
Cash-secured put.
You sell a put option, you choose a bid, you agree to buy stocks at a strike price if other party wants, and that’s a cash-secured put.
Objective: You sell a put when you believe the stock price will stay above the strike price or increase, meaning the put will expire worthless, and you will keep the premium you received for selling it.
Vice versa, if you buy a put option, you choose bid, it means you buy a right(not obligation) to sell at a specific price.
Objective: Typically, you buy a put when you believe the price of the stock will fall.
Each put contract represents 100 shares.
