Selling Puts To Buy Stock -

Selling puts to buy stock, often called a (CSP) strategy, allows you to potentially acquire shares at a discount while getting paid to wait. Instead of buying a stock at its current market price, you sell a contract that obligates you to buy it at a lower "strike price". How the Strategy Works

: You are "assigned" the shares. You must buy them at the strike price, but your effective cost basis is lower because you keep the upfront premium. Key Benefits Putting Put-Writing Into Perspective - Neuberger Berman selling puts to buy stock

: The option expires worthless. You keep the entire premium as profit and do not buy the stock. Selling puts to buy stock, often called a

There are two primary outcomes at the contract's expiration: often called a (CSP) strategy