Who Uses Sell Naked Put Options Strategy

This options trading strategy is mainly used by experienced and sophisticated investors who want to increase the number of shares that they own of a given stock, and yet for whatever reason they do not want to commit to the shares just yet.

So momentum and short term traders should probably stay away from this options trading strategy. The key question for getting involved with such a strategy is whether you want to own the shares of the underlying stock of a put option. If you do not, then you should not be considering selling naked put options.


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