Welcome to tastytrade Option Strategy Series! In this episode, we explore covered puts. We delve into a covered put options' mechanics, profit and loss scenarios, and associated risks. Whether you're a seasoned trader or new to options, this video provides valuable insights into trading covered put options. Covered puts are a more advanced options strategy that involves selling a put option while simultaneously shorting the underlying stock. This approach is generally used by traders who have a neutral to slightly bearish outlook on the stock. The primary goal is to produce income from the option's premium, with the potential to buy the stock at a lower price if the market declines. However, it's important to understand that while covered puts can provide premium income, they also carry the risk of significant losses if the stock price rises sharply. This content is for demonstrative, informational, and educational purposes only. It is not, nor is it intended to be, trading or inves...