Naked Put Option Trading Signals

A naked option, also known as an uncovered option, is a type of financial contract where the seller (also known as the “writer”) of the option does not hold the underlying asset or an offsetting. 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. Naked puts and covered puts, both pivotal in the options trading toolkit, cater to distinct trading landscapes and risk appetites due to their inherent differences. A naked put entails selling a.