A naked (short) put sells a put to collect premium without setting cash aside. It profits if the stock stays above the strike, with substantial risk if it falls sharply.
Open the Naked Put calculator →A naked put has the same payoff shape as a cash-secured put, but you do not set the full cash aside — the broker holds margin instead. That leverage boosts return on capital but magnifies risk if the stock falls.
Because the position is margined rather than cash-backed, a sharp decline can trigger a margin call, forcing you to add funds or close at a loss.
Your loss grows as the stock falls below the strike, all the way down (a stock can in theory go to zero), offset only by the premium collected. This is not a beginner trade.
Manage it with strict position sizing, and consider buying a cheap further-OTM put to convert it into a defined-risk bull put credit spread.
Use the free OptionProfit Naked Put calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
The payoff is identical, but the naked put uses leverage, so the same loss hits a smaller capital base and can trigger margin calls.
Buy a cheaper put below your strike to cap the downside — that turns it into a defined-risk bull put credit spread.
No. Beginners should use cash-secured puts or defined-risk spreads until they fully understand the leverage and assignment risk.
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