Skip to main content

Posts

Showing posts with the label CashCoveredPuts

Explanatory Overview of Cash-Secured Put Options at Fidelity Investments

#CashSecuredPuts #CoveredCalls #SellingPuts... ( read more ) LEARN MORE ABOUT: IRA Accounts CONVERT IRA TO GOLD: Gold IRA Account CONVERT IRA TO SILVER: Silver IRA Account REVEALED: Best Gold Backed IRA If you are an investor looking for a way to generate income while limiting your risk, you may want to consider cash secured put options. Offered by Fidelity Investments, this strategy involves selling a put option contract that is backed by cash in the investor's account. What are cash secured put options? Put options give the buyer the right, but not the obligation, to sell a stock at a specified price (strike price) by a certain date (expiration date). In a cash secured put option, the seller of the put option (the investor) promises to purchase the stock from the buyer at the strike price if the stock falls below that price before the expiration date. To ensure they have the funds to purchase the stock if necessary, the investor sets aside cash