How to Use a Naked Put in Binary Options Trading

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How to Use a Naked Put in Binary Options Trading

Posted on by John Thiel

The classic Naked Put definition refers to a scenario when a writer owning a put option does not have a short position in the stock on which he’s written the put. This situation is also known as an “uncovered put”, and the level of risk is very high because the profit is limited to the premium received at the time the option is sold. I have seen a lot of novice traders lose a lot of money because they do not know how to manage risk properly. I have two friends who trade binary options on a regular basis and I …

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