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Thursday, December 26, 2024

RISK GRAPHS: THE NAKED SHORT PUT

TOOLS OF THE TRADE
THE NAKED SHORT PUT
 This week we are going to explore the “Naked Short Put”.  It is called “Naked” because the position is not hedged.  This is a bullish strategy and the potential gain is limited to the credit received.  You will notice that the “Naked Short Put” is synthetically equivalent to the “Covered Call”.  […]

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