A bare put choice technique assumes that the underlying safety will fluctuate in value, but typically rise over the following month or so. Based on this assumption, a dealer executes the technique by selling a put option with no corresponding brief place of their account. This sold possibility is claimed to be uncovered because the initiator has no place with which to fill the terms of the choice contract, should a purchaser want to exercise their right to the option. A bare put is an options technique during which the investor writes, or sells, put options without holding a brief place within the underlying security. A bare put strategy is typically referred to as an “uncovered put” or a “quick put” and the seller of an uncovered put is recognized as a unadorned writer.
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