Uncovered short puts are frequently described as “naked short puts,” because speculators who sell uncovered puts typically do not want a long stock position. As a result, the writers (ornaked put strategy。
The allure of the naked put strategy in options trading lies in its potential rewards, but it doesn’t come without its set of challenges. Let’s distill the key pros and cons. Pros. Raking in。
Heres the basic setup of a naked put, along with how to calculate the positions maximum gain, maximum loss, and breakeven point. There are plenty of ways to profit on a stocks movement。
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