naked put strategy|What is Naked Put? Definition, Trading Guide, Examples

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Using a naked put strategy, you sell put options on a stock you do not own, and earn the premium income if the option expires worthless.

A naked put (NP) is a bullish options strategy wherein the investor writes (sells) a put option withounaked put strategyt having a short position on the underlying stock. Investors profit from the option。

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。

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