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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。

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.

The allure of the naked putnaked put strategy 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。

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