Selling Cash Secured Puts
Selling a cash-secured put can be a smart investment move for those who are bullish on an asset in the long-term, but don't want to pay the current market price. Essentially, it is an agreement to buy at a price that you are comfortable with, and you get paid an option premium upfront for agreeing to it.
One of the benefits of this strategy is that you receive the option premium upfront, which you can then reinvest immediately. This can be especially useful for those looking to increase their investment portfolio. Additionally, by entering into a cash-secured put, you can potentially benefit from a price increase in the asset over time, while also having a lower cost basis for buying the asset if the price does fall. Overall, it's important to carefully consider the risks and rewards of this strategy before deciding whether or not it's right for you.
An example of Arrow's cash-secured put options, illustrating the various strike prices and expiration dates available on our website.