{"id":10444,"date":"2023-12-26T20:42:22","date_gmt":"2023-12-26T12:42:22","guid":{"rendered":"https:\/\/slashtraders.com\/?p=10444"},"modified":"2026-06-12T20:10:45","modified_gmt":"2026-06-12T12:10:45","slug":"selling-naked-put-options","status":"publish","type":"post","link":"https:\/\/slashtraders.com\/en\/blog\/selling-naked-put-options\/","title":{"rendered":"How to Sell Naked Put Options for a Steady Income"},"content":{"rendered":"<p class=\"wp-block-paragraph translation-block\">Don't we all want to buy stocks at the <a href=\"https:\/\/slashtraders.com\/en\/tools\/bull-put-spread-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">beginning of a bullish trend<\/a>? But we also worry that the stock price may not move and we waste a lot of time waiting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We share what a naked Put contract is that can help you make a consistent income even when the stock price doesn't move.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"DNgnZ89VIlidlRcMQvkAFtxbhzoSfPqiys3njObMLJcZ73JIoNrhD5y6UQrm12ekGRWf1uFXuGqv0aEsL9pxPwEdeazYjHtVA5\"><iframe title=\"Sell Naked Puts for Profit When the Stock Price Doesn&#039;t Fall\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/pJ7ZXt0y5L4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/span>\n<\/div><\/figure>\n\n\n<p><\/p>\n\n\n\n<h2 id=\"\u4ec0\u9ebc\u662f\u88f8\u8ce3-put\u671f\u6b0a\uff1f\" class=\"wp-block-heading\">What Is a Naked Put Option?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Naked Put is a short Put strategy without having enough cash reserves to purchase 100 stocks. It is a bullish <a href=\"https:\/\/slashtraders.com\/en\/blog\/what-are-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">options strategy<\/a> that becomes profitable if the stock price does not fall.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-profit.png\" alt=\"naked put profit\" class=\"wp-image-10453\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-profit.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-profit-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-profit-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-profit-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-profit-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The naked Put becomes profitable if the stock price does not fall.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">A short OTM Put option earns a premium upfront. The Put <a href=\"https:\/\/slashtraders.com\/en\/blog\/options-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">options value depreciates<\/a> if the stock price stays above the strike price before the option expires. Then the strategy earns a profit.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Maximum profit = premium<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">If the option value expires worthless, the maximum profit of selling a naked Put is the premium.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-loss.png\" alt=\"naked put loss\" class=\"wp-image-10456\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-loss.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-loss-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-loss-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-loss-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-loss-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The short Put loses if the stock price falls below the strike price.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If the AMD stock price falls below the strike price before expiration, we will be assigned 100 shares to purchase. But the naked Put strategy usually means there are not enough funds to buy the 100 stocks, so we would be forced to buy to close the Put option for a loss.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Loss = 100 x (strike price - stock price) - premium<br>Maximum loss = 100 x strike price - premium<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The loss is calculated as 100 times the difference between the stock price and the strike price. If unfortunately, the company goes out of business, the maximum loss is 100 times the strike price.<\/p>\n\n\n\n<h2 id=\"\u88f8\u8ce3-put\u6b0a\u7684\u512a\u9ede\" class=\"wp-block-heading\">Benefits of Selling Naked Puts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are a few advantages of selling naked Puts:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Naked Puts can generate steady income from the premium.<\/li>\n\n\n\n<li class=\"translation-block\">It can be profitable even if the <a href=\"https:\/\/slashtraders.com\/en\/tools\/options-scanner\/\" target=\"_blank\" rel=\"noreferrer noopener\">stock price stays neutral<\/a>.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">So we can continue to sell naked Puts if we feel the stock price is undervalued.<\/p>\n\n\n\n<h2 id=\"\u88f8\u8ce3-put\u6b0a\u7684\u98a8\u96aa\" class=\"wp-block-heading\">Risks of Naked Put Options<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are a few risks in trading naked Put options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the account does not have enough cash to buy 100 stocks upon assignment, then we usually need to close the trade for a loss.<\/li>\n\n\n\n<li>The strategy doesn't put a limit on the maximum loss. If the company goes bankrupt, the trade loses 100 times the value of the strike price.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\"><img decoding=\"async\" width=\"1024\" height=\"126\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner.png\" alt=\"blog trial banner\" class=\"wp-image-9717\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-300x37.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-1024x126.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-768x95.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-18x2.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 id=\"\u88f8\u8ce3-put\u7684\u9078\u80a1\u65b9\u5f0f\" class=\"wp-block-heading\">Strategies for Selling Naked Puts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The naked Put strategy is suitable for bullish stocks. So we prefer to <a href=\"https:\/\/slashtraders.com\/en\/tools\/best-value-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">use the Bullish Value Stocks screener to find undervalued stocks<\/a> with more than 10% Upside. This way we have <a href=\"https:\/\/slashtraders.com\/en\/blog\/margin-of-safety-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">enough margin of safety<\/a> to feel comfortable that the stock price will not fall shortly.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"201\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-stock-picker.png\" alt=\"naked put stock picker\" class=\"wp-image-10459\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-stock-picker.png 1250w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-stock-picker-300x59.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-stock-picker-1024x201.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-stock-picker-768x151.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/naked-put-stock-picker-18x4.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Pick undervalued US stocks with &gt;10% Upside.<\/figcaption><\/figure>\n\n\n\n<h2 id=\"\u6700\u9069\u5408\u88f8\u8ce3-put\u7684\u80a1\u7968\" class=\"wp-block-heading\">Best Stocks for Selling Naked Put Options<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Once we filter the US stocks to find <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-value-investing-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">undervalued opportunities<\/a>, we can choose our favourite stocks to sell naked Puts.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"271\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/best-naked-put-stocks-1024x271.png\" alt=\"best naked put stocks\" class=\"wp-image-10461\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/best-naked-put-stocks-1024x271.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/best-naked-put-stocks-300x79.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/best-naked-put-stocks-768x203.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/best-naked-put-stocks-18x5.png 18w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/best-naked-put-stocks.png 1249w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Best stocks for selling naked Puts.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The most undervalued bullish stock right now is KSS. So we can sell a Put contract at around 20 <a href=\"https:\/\/slashtraders.com\/en\/blog\/option-greeks\/\" target=\"_blank\" rel=\"noreferrer noopener\">delta<\/a> that expires next month. Then we can make a profit if the stock price stays up.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/kss-naked-put.png\" alt=\"kss naked put\" class=\"wp-image-10462\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/kss-naked-put.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/kss-naked-put-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/kss-naked-put-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/kss-naked-put-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/12\/kss-naked-put-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Profit analysis of KSS short Put options.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">But if the stock price falls sharply before expiration, our loss would be 100 times the difference between the market price and the strike price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">We also need to <a href=\"https:\/\/slashtraders.com\/en\/blog\/value-trap\/\" target=\"_blank\" rel=\"noreferrer noopener\">avoid value traps<\/a>, to prevent buying and owning losing stocks.<\/p>\n\n\n\n<h2 id=\"\u6bd4\u88f8-put\u66f4\u597d\u7684\u4ea4\u6613\u7b56\u7565\" class=\"wp-block-heading\">Better Alternatives to Naked Puts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Even though the naked Put is a simple <a href=\"https:\/\/slashtraders.com\/en\/tools\/bull-put-spread-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">bullish options strategy<\/a> to use, we still worry about the potential risk of maximum losses. So we recommend a few alternative strategies in a bullish market:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/cash-secured-put-stock-picker\/\" target=\"_blank\" rel=\"noreferrer noopener\">Selling Cash-Secured Puts<\/a> lets us earn a premium while waiting for the right price to buy stocks.<\/li>\n\n\n\n<li class=\"translation-block\">The <a href=\"https:\/\/slashtraders.com\/en\/blog\/bottom-out-stock-bull-put-spread\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bull Put Credit Spread<\/a> uses the least amount of buying power for a bullish trade, while also limiting the maximum losses.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>We all want to profit from a bullish trend, but worry that the stock price may not move. We share what a naked Put is that can make a steady income in a neutral market.<\/p>","protected":false},"author":1,"featured_media":10445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[60,56,12,64,14,11],"class_list":["post-10444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-amd","tag-cn","tag-en","tag-es","tag-options","tag-tw"],"_links":{"self":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/10444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=10444"}],"version-history":[{"count":5,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/10444\/revisions"}],"predecessor-version":[{"id":14632,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/10444\/revisions\/14632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media\/10445"}],"wp:attachment":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=10444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=10444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=10444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}