To sell a financial instrument in order to open a trade in expectation for a downward move in the instrument. Shorting stock requires the stock to be borrowed from the broker and then later returned. Shorting options (or writing) involves creating a new contract for the option buyer.
The dividend annual yield if assigned the stock at the trades break-even price. This is a useful criterion when writing short puts for discounted acquisition of stock.
To sell a financial instrument in order to open a trade in expectation for a downward move in the instrument. Shorting stock requires the stock to be borrowed from the broker and then later returned. Shorting options (or writing) involves creating a new contract for the option buyer.
The dividend annual yield if assigned the stock at the trades break-even price. This is a useful criterion when writing short puts for discounted acquisition of stock.
