Exchange Currency

writing puts to acquire stock

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.

Related information about writing puts to acquire stock:
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    Definition of writing puts to acquire stock: 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 ...
     
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    Selling a put option at an exercise price that would represent a good investment by an option writer who believes a stock's value will fall, so that the writer cannot ...
     
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  6. Chapter 18 Option Overwriting
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  8. Writing Naked: Definition from Answers.com
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