naked put strategy|Short Put

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A naked put involves writing a put option without the reserved cash on hand to purchase the underlying stock. This strategy entails a great deal of risk and relies on a steady or rising stock。

A naked put (NP) is a bullish options strategy wherein the investor writes (sells) a put option without having a short position on the underlying stock. Investors profit from the option。

The allure of the naked put strategy in options trading lies in its potential rewanaked put strategyrds, but it doesn’t come without its set of challenges. Let’s distill the key pros and cons. Pros. Raking in。

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