What is naked put....
when person bought any option of put without any underlying trade is called naked put option. It can be buy or sell, depends on situation and movement of market.
10-12 days ago when zeel ent moved from 430 rs to 300 put holder made excellent gain in signal trading day.
Example: Buying put option of yes bank strike 200 @ 4.30 rs is neck put option.
For put buyer risk limited to amount of investment, while profit can be maximum up to strike price * lot size,
It is best strategy used to safeguard portfolio during stress market.
Happy reading
Derivativelearn
Happy reading
Derivativelearn
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