Naked Put Defintion - naked pout


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May 02, 2019 · Naked Put: A put option whose writer does not have a short position in the stock on which he or she has written the put. Sometimes referred to as an "uncovered put.". A naked put would require a margin account, and the broker/dealer would extend margin credit to cover any deficiency if the put is exercised. Even if the investor has sufficient funds in the account to cover the exercise, it can still be classified as naked if the account is approved for naked puts.Author: Evan Niu, CFA.

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