How To Trade A Short Naked Put
Channel: NavigationTrading
Date: 2017-06-21

How To Trade Short Naked Put

The Short Naked Put is one of the core strategies that we trade at NavigationTrading.

The Short Naked Put is a great strategy to trade in periods of High Implied Volatility. Since they require a relatively small amount of capital, they can be traded in virtually any size account.

In this video, we will walk you through how to:
1.  Evaluate Implied Volatility
2.  Find an underlying symbol to trade
3.  Locate the correct strikes to trade
4.  Analyze the trade
5.  Place the trade

Here’s the metrics we look for when trading Short Naked Put:
-  Market Assumption – Bullish
-  Implied Volatility – High
-  Trade Setup: Sell One OTM Put; 30 Delta
-  Profit Target – 25-50% Max Profit
-  Downside risk – Stock could go to zero
-  Upside risk – none
-  Probability of Profit – 70%
-  Time Decay (Theta) POSITIVELY impacts this position

Want the full step-by-step details on how to trade options? Click below to learn more.

https://www.navigationtrading.com/trading-options-for-income/

Have you tried our 2 week trial of NavigationALERTS? Click below to learn more.

https://www.navigationtrading.com/navigationalerts-2weektrial/

Also, don’t forget to join us every Monday morning at 8:25 am CST, where we broadcast our “Trade of the Week” LIVE from our Facebook page and YouTube channel

At NavigationTrading we consider it a privilege to be your guide on this exciting journey.

Happy Trading!

The NavigationTrading Team
https://www.navigationtrading.com
info@navigationtrading.com