Sell Put

Selling a Put Option, also known as ”Going Short” on a put, is a strategy used by investors who have a bullish outlook on the market and expect the asset price to rise or remain stable. When an investor sells a put option, they earn a premium from the buyer. If the underlying price increases above the strike price or remains stable, the seller keeps the premium as profit. However, if the price drops below the strike price, the seller may face losses, with the maximum loss occurring if the underlying asset’s price falls to zero.

  • Investor View : Bullish on the underlying asset.
  • Potential Risk : Limited.
  • Potential Reward : Limited to the premium earned.

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