Writing cash-secured puts

Definition:

An option strategy to avoid using a margin account. Instead of depositing margin with a broker, a put writer can deposit a cash balance equal to the option exercise price, and can avoid additional margin calls.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Annual meeting

Meeting of stockholders held once a year at which the managers of a company report to the stockholders on the year's results.

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