Trading Basics: Naked Puts

Trading Basics: Naked Puts

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Naked puts are an options strategy where you sell an option against a security you don’t own. If the option expires worthless, you get to keep the credits. However, if the option is exercised, you need to buy (and be able to buy) the security in question. Needless to say, this can easily blow up an account if not done correctly. Coach Tim is here to through the basics of the trade.

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