Cash-Secured Put
Selling a put while holding enough cash to buy shares if assigned.
Explanation
Cash-secured puts are often used to collect premium while attempting to acquire stock at an effective discounted price. Maximum risk is owning the underlying down to zero, offset by premium received.
Example
Sell a 100-strike put for $2.00 while reserving $10,000 cash. Effective stock entry if assigned is $98.