Naked Put Options Strategy Explained

How can a short put writer reign in the risk of this investment? First, the investor could set aside the financial resources to take ownership of the stock at any time if assigned. Feb 27, 2023 · what is a naked put option and how does it work? A naked put option is an options trading strategy that involves the sale of a put option without owning the underlying. The primary benefit of the naked put strategy is the opportunity to generate income from premiums received by selling put options.

A naked put, also known as an uncovered put, is an options strategy where an investor sells put options without holding positions in the underlying security. This strategy is used when the.