Buying And Selling Domain

Buying And Selling Domain

Buying And Selling Domain

A covered put sell is something like a covered call in reverse. Covered put buyers,on the other hand, buy a put to profit from an owned stock in decline.

Selling Covered Puts

The seller is obligated to buy at the strike price if the buyer exercises his right to sell.

Unlike a covered call option, there is no ownership in the underlying stock, although owning the stock and selling a put on it is not unheard of.