When To Sell Naked Put Options

You would sell a naked put options when you want to use high volatility options trading strategy to accumulate stock below the present market prices. So you may sell a naked put option when:

very high implied stock volatility is present
you can identify a solid support level
you want to end up owning the underlying stock

Selling a naked put option is a specialized options trading strategy, and is never used by many traders.


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