Definition

Short Put

Meaning ⎊ Selling an obligation to buy an asset at a set price for a fee, betting the asset price will not fall below that level.
Greeks.liveMarch 12, 2026

Short Put

A short put is an options trading strategy where an investor sells or writes a put option contract to another party. By selling the put, the investor collects an upfront premium in exchange for the obligation to purchase the underlying asset at a specified strike price if the option is exercised by the buyer.

This strategy is generally used when the trader has a neutral to bullish outlook on the underlying asset, expecting it to stay above the strike price until expiration. If the asset price remains above the strike, the option expires worthless, and the seller keeps the full premium as profit.

However, if the asset price falls below the strike, the seller is obligated to buy the asset at the strike price, which may be higher than the current market value. This carries significant downside risk, as the asset price could theoretically drop to zero.

The short put is a fundamental tool for generating income in volatile markets. It requires careful management of margin requirements and risk exposure.

It is the opposite of a long put position.

Bear Put Spread
Put Option Protective Floor
Delta Neutral Strategy
Downside Protection
Skew Dynamics
Put Option
Synthetic Shorting
Margin Requirements

Glossary

Long Short Term Memory Price Prediction

Algorithm ⎊ Long Short Term Memory price prediction, within cryptocurrency and derivatives markets, leverages recurrent neural network architecture to model temporal dependencies inherent in financial time series.