Investing, Personal Finance, and Credit

What Is An Uncovered Put

What is an uncovered put?

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What Is An Uncovered Put

A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. The writer has pledged to buy the asset at a certain price if the buyer of the option chooses to exercise it.

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