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Heres the basic setup of a naked put, along with how to calculate the positions maximum gain, maximum loss, anaked put strategynd breakeven point. There are plenty of ways to profit on a stocks movement。

A naked put involves writing a put option without the reserved cash on hand to purchase the underlying stock. This strategy entails a great deal of risk and relies on a steady or rising stock。

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 worthlesnaked put strategys.

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