That means if you choose to close your position prior to expiration, it will be less expensive to buy it back. Selling puts as pure speculation, with no intention of buying the stock, is suited only to the most advanced option traders. That means depending on how the underlying performs, an increase or decrease in the required margin is possible. Save my name, email, and website in this browser for the next time I comment. The brokerage company you select is solely responsible for its services to exit naked put.
Re-engineering My Exit Strategy when Selling Naked Puts
The short call results are pictured below: However, the lower the strike price, the lower the premium received from this strategy. That will decrease the price of the option you sold, so if you choose to close your position prior to expiration it will be less expensive to do so. Exit naked put I buy to close the put and keep my gains? Subscribe me to your mailing exit naked put.
Selling puts as pure speculation, with no intention of buying the stock, exit naked put suited only to the most advanced option traders. By accessing, viewing, or using this site in any way, you agree to be bound by the above conditions and disclaimers found on this site. Multiple leg options strategies involve additional risksand may result in complex tax treatments.