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Short Naked Put

Analyzing the risk profile of a short naked put

Variation In Strike Price

Let's take a look at how
selection affects this strategy. Pay close attention to the delta of each strike. Notice how the farther
the strike is, the lower the maximum profit, but the better the break even. Short options allow you to limit your profit potential in exchange for much higher probability of success.
Risk Profile: 25 Delta Short Put
Risk Profile: 50 Delta Short Put
Risk Profile: 75 Delta Short Put

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