Covered Put Strategies
A covered put involves selling a put option while holding a short stock position. It’s an income-generating strategy used when an investor believes the stock will remain flat or decline slightly—but comes with substantial risk if the market moves against them.
You’ll learn:
Generalities of income-based strategies
How covered puts are constructed and why they’re used
Risk/reward profile, breakeven point, and maximum gain/loss
A reliable system for solving math-based exam questions
📘 Related Exams: SIE, Series 7, Series 9, Series 65, Series 66
🧠 Skill Level: Intermediate
📈 Topics Covered: Options income strategies, short stock mechanics, risk profiles, breakeven math
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