Naked Puts… Potentially A Most Profitable Options Strategy Yet Most Frequently Abused…
The naked puts charlatans come in waves. As soon as one generation forgets about the last attempt at selling a ‘no lose naked put’ strategy, a new schmuck arises with a similar ‘new strategy’ leading the desperate masses, desperate for 110% winning rates to buy into the program.
Remember 1999? The good old days… Well back then ‘stocks always went up’ and if they pulled back ‘they’d go up later’ – right? So therefore if we solid naked puts and the stock went against us we would simply ‘roll it out’ to the next month until we won! Aha! Genius! Brilliant! And since we ‘can’t lose’ why not sell a bunch of naked puts taking advantage or the margin our brokers so generously offered to us. Wow what genius though of this!
Then in late 2000, during the Bush/Gore ballot recount, the markets cracked, a very long term trend broke. Naked put sellers kept rolling out, and rolling out and rolling out – ‘hey wait, when is this going to turn around?’.
There would finally be some relief as the markets retraced, but that would be short lived and the markets continued down, and down, and down. The margin calls started coming in, accounts got wiped out. Poof. It was all over. In a flash.
Their (hair brained) naked put strategy failed them. The childish, desire to only win, and win every time (even if it makes only a tiny amount of money) doomed them from the start.
Fortunately by that time I had much experience in the markets. That strategy ‘smelled funny’ from the start. It just didn’t add up because stocks didn’t ‘always go up’. They just didn’t want to believe that this is a high risk, or unlimited risk and Limited we ward strategy. Yes there was an advantage with premium decay but speed of the market easily offset that advantage. And once you’re naked puts start going against you they hit 100% deltas AGAINST you just about right away.
With all of this said, we don’t need to sell naked puts in a stupid way. We can use other smarter strategies that can put the power of selling that fine juicy premium to our advantage. And we can actually turn selling naked puts into a net worth building strategy that could yield us superior returns, While putting the risk risks to reward ratio more on our side.
- Did you know you can actually place a stop loss on a naked option? But we don’t use actual stop loss orders on options. Discover how we exit our naked put positions at the exact price we want for a stoploss or profit-taking exit.
- Leverage issues need to be fixed and we found a fix for that allowing us to move naked put selling in a category making it more safe than just buying and selling stock.
- What if you never owned a stock again on purpose and just sold naked puts instead?
- Learn how to trade naked puts aggressively by riding price swings and price trends
- Learn how to ‘roll out’ naked puts the right way into an up trend for more and more profit (and not the old moron strategy of rolling out for more and more loss!)
- Find out how to potentially quadruple profits and obtain them much more quickly if you are naked put Weekly options strategies and systems.
Products
Naked Puts MasteryNaked Puts Mastery – Learn the ins and outs of selling naked puts. Discover the best ones to sell. Find out how to help prevent getting exercised. Learn how to easily prevent losing your shirt. We show you a powerful strategy for cash flow and networth building. You’ll never want to own a stock again. Put your money to work in a powerful way and let those 90% plus options buyers who let their options expire worthless give you their money!
Naked Puts ExtremeNaked Puts Extreme – Time to take this game up a notch. Not only do we make money by simply holding a naked put position, we can make money with the stock goes up. What if you were able to make money and lock it in selling naked puts on each upswing (while limiting your risk exactly with a price trigger type of stop loss)?
PremiumPILLAGE PremiumPILLAGE – Claim Plump Weekly Options Premium in a Systematic Way – Weekly Options Naked Calls and Naked Puts Selling System. Selling Naked Puts on Weekly Options – What a gift the CBOE has given us! Now we have options expiration every week. Now we can sell 4 times the number of naked puts. But’s it’s even better than that because weekly options tend to have FAT premiums, ripe for selling. But… you better have a good system, you bet
Naked Put selling goes well with our Naked Call selling programs so you can take advantage of both sides of the market. Check out our Naked Call Programs