This strategy allows an investor to purchase stock at the lower of strike price or market price during the life of the option.
The cash-secured put involves writing a put option and simultaneously setting aside the cash to buy the stock if assigned.
This strategy is appropriate for a stock considered to be fairly valued.
This strategy combines a longer-term bullish outlook with a near-term neutral/bearish outlook.
Originally bullish and long shares, the investor is now looking to recover some or all of the original investment prior to exiting the long stock position as share prices have declined.