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The Option Alpha Podcast

196: Hedging Short Naked Puts

The Option Alpha Podcast

Kirk Du Plessis

Investing, Trading, Stock Market, Business, Options Trading, Education, Finance

4.81.2K Ratings

🗓️ 19 October 2020

⏱️ 44 minutes

🧾️ Download transcript

Summary

Show notes: http://optionalpha.com/show196

Trading short naked puts (i.e. put selling or put writing) can be an effective and profitable options trading strategy. Often the attraction to naked put selling is the ability to collect premium with a margin for error if the stock drops, and have the ability to purchase stock at a discount to the current market price. The trouble comes however when the stock moves lower and challenges the naked put position and today's show is dedicated to helping you understand all the ways you can hedge short naked puts.

Transcript

Click on a timestamp to play from that location

0:00.0

Creating short naked puts, i.e. put-selling or put-writing can be an effective and profitable

0:04.9

options trading strategy.

0:06.3

Often the attraction in naked-put selling is the ability to collect premium with a margin of air

0:10.4

if the stock drops and have the ability to purchase stock at a discount to the current market price.

0:15.0

The trouble comes, however, when the stock moves lower and challenges the naked put position,

0:19.0

and today's show is dedicated to helping you understand all the ways you can hedge short naked puts.

0:24.3

You're listening to the Option Alpha Podcast.

0:27.3

From Option Alpha.com, where we show you how to make smarter trades.

0:31.4

Learn how the stock market really works

0:33.4

and generate consistent monthly income.

0:36.7

Now, your host and head trader at option alpha.com,

0:40.4

Kirk Dupluses.

0:44.9

Hey everyone, this is Kirkier again from Option Alpha dot com working every single week to make this the most popular

0:47.8

investing podcast offered online because it's based on one thing and one thing

0:51.6

only and that's helping you consistently play smarter

0:54.3

more profitable trade so thank you so much again for tuning in today on today show

0:58.4

number 196 we're gonna be talking about hedging short naked put option contracts and this is specifically geared

1:04.7

towards those people who like to trade short puts, whether it's put selling, put writing,

1:09.1

whatever you call it, we just call it naked short put writing or naked short selling and we're going to be talking through the

1:14.5

different ways in which you can hedge and adjust and roll those contracts so if this is something that's

1:19.7

in your wheelhouse you'll definitely enjoy today's podcast. As a quick reminder before we jump

1:24.5

into it, we only have 12 days left, depending on when you're actually listening to this

...

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