Short Put
In Lyra's system, to sell a put you must collateralize it with cash equivalent of the strike. The payoff structure of a short position is as follows:
Why trade it? If you think a stock is going up, staying where it is, or only going down a small amount.
Setup: Sell a put short, post the strike price as collateral (in cash)
Example: Selling the ETH 2000 put expiring in 15 days for $150.
Cost: The collateral posted minus the premium received from the put ($2000 - $150 = $1850).
Max Profit: The premium received for the put ($150).
Max Loss: The difference between the strike price and zero, minus the premium received for the put ($2000 - $0 - $150 = $1850).
Breakeven at expiration: The strike minus the premium received ($2000 - $150 = $1850).
Copy link