Assertion: put's profit | /r/HasProperty | limited to the premium
Facets:
value: unlike the covered put write
type: OTHER
Source sentences:
text: Profit on put writing is limited to the premium received, yet losses can be rather substantial, should the price of the underlying stock fall below the strike price.
text: Profit for the uncovered put write is limited to the premiums received for the options sold and unlike the covered put write, since the uncovered put writer is not short on the underlying stock, he does not have to bear any loss
text: Profit for the writer in this strategy is limited to the premium earned and also there is no upside risk involved since the writer does not short the underlying stocks.
text: While the profit (if the stock drops in price) is limited to the premium received at the time the option is sold, the risk is unlimited.
text: A short put trade can be an extremely risky position because while the profit (if the stock rises in price) is limited to the premium received at the time the option is sold, the downside risk increases the closer the stock gets to zero.