basicHigh RiskNeutral / Bullish
Naked Put
Sell a put without holding cash to buy the shares. Risk if stock collapses.
What is a Naked Put?
Similar to a cash-secured put but without the cash reserved. You collect premium for selling the put, and your broker provides margin. If the stock falls below the strike, you're obligated to buy shares at the strike price — potentially at a large loss relative to market value. Risk is lower than a naked call (stocks can't go below zero) but still substantial.
When to use it
Used by experienced traders who want leverage on premium collection without tying up full cash. Only in neutral-to-bullish environments on stocks you'd be willing to own.
Structure
Sell 1 put on margin, without holding full cash to cover assignment.
Key Metrics
Max Profit
Premium received.
Max Loss
Strike × 100 − premium received (if stock goes to zero).
Breakeven
Strike − premium received.
Greeks Profile
Delta: positive. Theta: positive. Vega: negative.
Tips & Best Practices
- 1The main risk vs. cash-secured puts is margin calls — if the stock drops, your broker may force a close.
- 2Only trade on liquid, high-quality stocks — not speculative names.
- 3Keep position size small relative to account.
- 4Understand your broker's margin requirements before trading.
See it in action
Model a Naked Put with a real ticker. See the P&L chart, heatmap, and exact breakevens.
Open Naked Put Calculator →