Why would someone choose to sell a put option?

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1040277

2026-03-12 16:40

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Someone might choose to sell a put option in order to generate income or profit from the premium received. By selling a put option, the seller is obligated to buy the underlying asset at a specified price (the strike price) if the option is exercised by the buyer. If the price of the underlying asset remains above the strike price, the seller keeps the premium as profit without having to buy the asset.

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