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selling cash-secured puts

The CBOE S&P 500 PutWrite Index (PUT): An Explanation and Evaluation of Lessons Learned

The PutWrite Index (“PUT” or “$PUT)  is an index created by the CBOE (Chicago Board options Exchange) which acts as a benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500 Index (SPX) put options against collateralized cash reserves held in a money market account. It is similar to the “BXM” […]

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selling puts

Selling Cash-Secured Puts On An Index

The index short put strategy is a form of selling cash-secured puts. It is a bullish strategy with the goal of generating premiums selling put options that expire worthless. Traditionally, at-the-money strikes are sold. As opposed to using stocks and exchange-traded funds as the underlying securities, index options are cash-settled at a profit if the strikes […]

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options on an index and on an exchange-traded fund

Index Options And Exchange-Traded Funds Options: A Comparison

Writers of covered calls and cash-secured puts use stocks or exchange-traded funds as the underlying securities. It is the value of these securities that give value to our option premiums. For example, we will buy back an option when share price moves down causing the corresponding option to decline in value as well. We may […]

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