FYI: Put-writing strategies have been around for many years, and are often used to help investors generate income in flat and rising markets. In summary, put options are contracts that give their owner (or buyer) the right to sell an underlying asset at an agreed-upon strike price, on (or sometimes “on or before”) a stipulated expiration date. On the other side of the contract is the put writer (or seller), who creates the put contract and then sells it on the open market. The price paid by the put buyer is called the “premium,” and if the put contract reaches its expiration date without being exercised, the put writer gets to keep 100% of this premium.
Regards,
Ted
http://dailyalts.com/wisdomtree-launches-index-tracking-put-writing-etf/
