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writing puts to acquire stock
Definition
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.
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Nearby Terms
- write-down allowance
- write-off
- writer
- writing cash-secured puts
- writing naked
- writing puts to acquire stock
- written-down value
- WST
- wt
- WTO
- X



