Short Put

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A short put is an options strategy where the investor sells¬†put options¬†without holding a short position in the¬†underlying security (selling a put while shorting the stock is known as a ‚Äúcovered put‚ÄĚ).¬†A short put strategy is sometimes also referred to as an "uncovered put" or a ‚Äúnaked put." The primary use of this strategy is to capture option premium on an underlying security forecast as going higher, but one which the trader or investor would not be disappointed to own for at least a month or maybe longer.