Buy a Call Option v Sell a Put Option

[OptionsOptionsOptions]

What's the difference selling a nake put and a cash secured put? Cash secured is you having the monies ready in case the stoc
k is put to you. Nake put is?

No difference .

 

[cesfx]

Doesn't naked mean you have enough money for the margin but not to cover the stock equivalent, and cash secured that you have enough to cover assignment in full?

 

[newwurldmn]

Doesn't naked mean you have enough money for the margin but not to cover the stock equivalent, and cash secured that you have enough to cover assignment in full?

naked means unhedged. You aren’t short stock or long another put against it.

 

[cesfx]

naked means unhedged. You aren’t short stock or long another put against it.

That is clear. But I thought and read around that there was a difference between cash secured and naked. That being having the total cash availability for eventual assignment (cash secured), or just the margin to enter an unprotected short and not enough to cover the underlying (naked).

 

[cesfx]

"Naked options refer to an option sold without any previously set-aside shares or CASH to fulfill the option obligation at expiration."
From investopedia.

Aren't they the same type of trade, with a difference in the cash balance?

 

[newwurldmn]

"Naked options refer to an option sold without any previously set-aside shares or CASH to fulfill the option obligation at expiration."
From investopedia.

Aren't they the same type of trade, with a difference in the cash balance?

yup. That is the only difference.