Naked Put Option Trading For Beginners — Key Highlights
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The naked put option strategy is used to generate income on a security you may not own but could be forced to buy.
Profit is limited to the premium received (net credit) for 100 contracts.
Aka short put, selling to open a put;
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.
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