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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.

A naked put refers to a situation where an investor sells a put option without already having an equivalent short position in the option’s underlying security. It is one of the ways that an。

The allure of the naked put strategy in options trading lies in its potential rewards, but it doesn’t come without itsnaked put strategy set of challenges. Let’s distill the key pros and cons. Pros. Raking in。

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