Writing Naked Puts
Writing naked puts is a strategy for investors who want to buy stock at below current market prices. If the stock is not available at that low price, then the investor earns a cash profit as a consolation. Writing naked puts is for the short-term investor who has a modestly bullish bias on the underlying stock or index. This book is for the trader who already has a basic understanding of how options work.
Writing Naked Puts is Mark Wolfinger’s attempt to share his thoughts on selling naked put options from the perspective of traders and investors, both novice and experienced.
This hands-on guide to making money with options is a strategy for two types of investors:
(1) Those who want to buy stock at below (current) market prices
(2) The shorter-term bullish trader who wants to earn a profit even when the stock price does not rally
The first part contains background information that provides a better understanding of why writing put options is an attractive strategy for anyone with a bullish market bias.
The second part covers trading ideas: how to think about a trade, how to prepare for a tradehow to enter and exit the tradehow to repair a trade – if and when it becomes necessary, and how to prepare for expiration.