Uncovered put \ A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. Also called naked puts, the writer has pledged to buy the asset at a certain price if the buyer of the options chooses to exercise it. The nature of uncovered call options means the writers risk is unlimited. With uncovered put options, the risk is limited to the value of the stock (adjusted for premium received.)
Uncovered put / a short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. also called naked puts, the writer has pledged to buy the asset at a certain price if the buyer of the options chooses to exercise it. the nature of uncovered call options means the writers risk is unlimited. with uncovered put options, the risk is limited to the value of the stock (adjusted for premium received.)
Uncovered put