Naked Put

(redirected from Naked puts)

Naked Put

A short position on a put option without having enough cash or cash equivalent to buy the underlying asset should the holder exercise the option. An investor with a naked put makes a gain or loss depending on the movement of the underlying asset. This position is quite risky and can result in large losses should the underlying asset not move in the investor's preferred direction. Naked puts are also called uncovered puts. See also: Covered Options.
References in periodicals archive ?
Written by a successful stock options investor of eighteen years' experience, Covered Calls and Naked Puts is a straightforward guide to low-risk opportunities in the options market.
You will find proven successful strategies on call and put plays, leaps, covered calls, naked puts and combinations.
Other clubs around the United States are known for their specific interest, such as covered calls and naked puts.
These forward positions include naked puts, forwards, matched put/call and spot deferred positions allocated to their intended periods of delivery and long term floating rate variable volume forwards.
Currently, the Naked Put section has 14 December candidates, all of which are above the sold strike (maximum profit).