Although an investor can generate potential interim income by selling a short put against a short stock position, an investor still faces unlimited risk on the short shares. The covered put strategy ...

Naked Put vs. Covered Put A naked put option strategy stands in contrast to a covered put strategy. In a covered put, the investor keeps a short position in the underlying security for the put option.

Learn why cash secured puts are ideal for holding cash, avoiding immediate stock losses, or buying shares at a lower price, while covered calls are great for earning premium while owning shares ...