When writing a put option does your account have to be funded so that if the buyer exercises the right to sell you can meet your obligation, or can you write the put option without the funds to meet the potential obligation?
There is no standard answer to this question. It will depend entirely on what kind of options activities your broker offers and what your broker has approved your specific account for. Consider:
Here's one example of one broker's option trading levels and margin requirements. Of course, your broker will vary, so call your broker for a specific answer.
This is called a Naked Put:
Your goal is most likely to collect the premium and pray the underlying security does not fall in price. You do not want to be assigned. Requires a margin account.
In contrast to the Cash Secured Put or Covered Put:
Your goal is to acquire the underlying security at a lower price, plus a discount from premium paid, or let the option expire. This is a good strategy, because the money securing the put typically sits in an interest bearing (sweep) account