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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 (or。

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。

A naked put, or uncovered Put, is an options strategy where an investor sells put options without owning the underlying stock. When one sells a naked put, they take on the obligation to buy。

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