short put

Selling a ticket that lets someone sell to you at a set price. You keep their fee but can lose a lot if price falls.

The fuller meaning

Selling a put option. The seller keeps the premium but must buy at the strike if exercised, so the maximum loss is the strike minus the premium if the underlying falls to zero.

short put.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger