July 26, 2021
The naked put strategy is a favorite for many traders. It carries a high probability of profit and adds positive theta to your portfolio. Check out the video on it in the Tackle Trading Playbook if you’re in need of a refresher.
If there’s a drawback, it’s the cost. If you’re using a margin account, it may not matter much, but the margin required for those wielding retirement accounts is equal to the max loss. And that can be a lot. As a result, your return on investment is tiny.