May 02, 2019 · Naked Put: A put option whose writer does not have a short position in the stock on which he or she has written the put. Sometimes referred to as an "uncovered put.". A naked put is when an investor sells a put option without having sufficient funds in the account to cover the purchase if the option is exercised. To set up a naked put, an investor simply sells Author: Evan Niu, CFA.
May 22, 2013 · Selling naked puts against undervalued stocks can generate significant income. How to Sell Naked Puts for Big Income Rather than continually write articles focusing on options strategies Author: Lawrence Meyers. A naked put is used when the investor expects the stock to be trading above the strike price at expiration. there is potential for profit in naked options and there are many successful traders.
“Naked” options writing brings substantial profit potential, but also high risk. Here are ten ways to help mitigate that risk and reap greater rewards when executing this type of strategy. When it comes to options trading, it doesn't get much sexier than playing it naked. No, I'm not referring. The only way out of this legal obligation prior to options expiring in MAY, is to buy back the naked puts which effectively ends the obligation. Of course, if the stock ends up higher than the naked put strike sold, then the seller of the naked put retains all the premium earned.