Definition: [crh] A short put option position in which the writer does not have a corresponding short Definition: stock position or has not deposited, in a cash account, cash or caDefinition: sh equivalents equal to the exercise value of the put. The writer has pledged to buy the asset at a certain price if the Definition: buyer of the option chooses to exercise it. Uncovered put options limit the writer's risk to the value of the stock (adjusted for premium received.) Definition: Also called "naked" puts.
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