Cash-secured put
Selling a put while holding enough cash to buy the shares at the strike if assigned. For one contract that cash is the strike times 100.
A cash-secured put sets aside the full purchase price of the shares, so the obligation is covered without borrowing. The seller collects the premium up front.
If the stock stays above the strike, the put expires worthless and the obligation ends. If the stock falls below the strike, the seller can be assigned and buys 100 shares per contract at the strike, with the premium lowering the effective purchase price. The risk resembles owning the stock from the strike down, less the premium received. The maximum gain is the premium received, and the maximum loss is the strike times 100 minus the premium, reached if the stock falls to zero.
Illustrative example (hypothetical numbers, not a real trade): a seller writes one $40 put for $1.20 and holds $4,000 in cash. If the stock is at $42 at expiration, the put expires worthless and the seller keeps the $120. If the stock is at $35, the seller buys 100 shares for $4,000 that are worth $3,500, and the $120 received offsets part of that $500 difference.