Uncovered Put Definition
Uncovered Put means a short put option position which does not have a corresponding short stock position or cash to accompany the put. If the market price of the underlying stock is below the strike price at the time of expiration, the option owner can exercise the put option and force the option writer to buy the stock at the strike price. In case the market price is at or above the strike price, the option expires and the put writer keeps the premium.