By Karim Rahemtulla Naked put selling – probably the least safe strategy on the planet, right? Not necessarily!
I know many brokers who advise their clients never to do this type of trade.
Why do you think that is?
Well, let’s look at what a naked put sell is…
When you sell a put option, you are obligating yourself to buy shares of the stock you sold puts on at the strike price that you sold them at… if the shares close at or below the strike price at expiration.
Of course, if the shares trade below the strike price before expiration, the buyer of the put that …read more