RT Journal Article
SR Electronic
T1 Analyzing the Sale of Puts on a Firm's Own Stock
JF The Journal of Investing
FD Institutional Investor Journals
SP 24
OP 29
DO 10.3905/joi.2001.319483
VO 10
IS 4
A1 Harold. Bierman, Jr
YR 2001
UL https://pm-research.com/content/10/4/24.abstract
AB When a firm sells puts on its own common stock, an interesting set of financial analysis problems are created. Should the amount equal to the proceeds from the sale of the puts be classified as a liability or as stock equity? At what amount should the liability for the sale of puts be recorded? Should the gain or loss resulting from the sale of the puts be included in the income statement? Under what circumstances should a firm sell puts on its stock? We should understand these issues better, as an increasing number of firms are selling puts on their own stock.