Covered Put - Components
Write (sell to open) 1 contract of nearest out of the money put option for every 100 shares you shorted.
Short 100 Shares + Sell 1 Put
Covered Put - Expectation
Down and Stagnant
Covered Put - Risk / Reward
Maximum Profit: Limited
Maximum Loss: Unlimited
Covered Put - Breakeven Point
Short Stock Price + Option Bid
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