Naked put is a short position in a put option where you hold no position in the base asset. Naked puts have limited profit potential and virtually unlimited loss. Technically, for most instruments maximum loss will be when the price of the base asset goes to zero. See also covered put, naked call, covered call, jade lizard.
Want to learn more? Download now an interactive reference application for iPhone. The screenshot shows the following portfolio:
Volume | Instrument |
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-1 | European put struck at 10.000 with expiry in 30 days |
This is an excerpt from iOptioneer option trading reference application. In order to build the real-time dynamic strategy graph and run simulations you will need to download the application from App Store.
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