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brendawalsh | 5 years ago

Are your Puts naked?

discuss

order

DarmokJalad1701|5 years ago

Long puts don't need collateral. Since he said "BTO" instead of "STO", naked or not is not applicable.

edoceo|5 years ago

BTO = Buy to Open (open the position)

STO = Sell to Open

When selling calls, you want to hold the underlying, else you're naked. When selling puts your coverage is cash