InvestorWords.com

Strategy utilized by investors who believe that a given stock's price is set to decline and as a result he/she writes a put option exercisable at the price after the decline. This is almost a win-win situation for the investor because if the stock's price heads upwards, the option will not be executed and still may result in some profit.

• Planning to Retire? Don't Count On Social Security Alone
• How to Contest Errors in Your Credit Report
• Which High Return Investment Is Right For Your Retirement Savings?
• "Buy Butterfly" Option Investment Strategy
• ETF Wraps
• Principles of Investing

Featured Advertiser