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Pearson Education

The Short Put, a Worthwhile Cash Cow

The Short Put, a Worthwhile Cash Cow

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How to use short puts to earn consistent profits with surprisingly limited risk.

You may know all about covered and uncovered call writing and the degrees of risk involved. But the uncovered put belongs in your arsenal as well. The short put offers great profit potential with limited risk. However, short puts are overlooked by many traders. Puts cannot be covered like short calls, but short put risks are lower because a stock's price cannot fall indefinitely....

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