What Is a Short Put? Understand the Risks and Rewards

Selling a put option — also known as writing a put — can seem like an easy way to earn income.
But before you jump in, it’s important to understand exactly how short puts work, what can go right, and what can go wrong.

In this lesson — and in the Yiddish video below — we’ll explain:

• How a short put works step-by-step
• What happens when you get assigned
• Why this strategy should always be cash-secured

🎥 Watch the full Yiddish video below

What Does It Mean to Sell a Put Option?

When you sell (write) a put option, you’re taking the opposite side of a trader who buys one.

That means:

• You’re giving the buyer the right to sell you shares at a certain price (the strike price).
• In exchange, you receive an upfront premium — that’s your potential profit.

This makes selling puts an income-generating strategy — but it also comes with obligations.

If the stock stays above the strike price until expiration, the option expires worthless, and you keep the premium as profit.
But if the stock drops below the strike price, you could be assigned — meaning you’ll be required to buy the shares at that strike price.

If you want to master options trading — and understand every strategy clearly in Yiddish — you can visit
👉 https://www.chaimekstein.com/blog