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  The options vendor will then should go to the open market and promote those shares at the market value loss, although the choices author needed to pay the choices strike price. For example, think about the strike value is $60, and the open market value for the inventory is $55 at the time the choices contract is exercised. In this case, the choices seller will incur a loss of $5 per share of stock. A Naked Put or short put earnings generation strategy is used to capture choice premium by promoting put options, where you expect the underlying safety to remain secure or improve in worth. Risk occurs if the safety decreases within the value, and loss is the distinction between the worth at entry and current worth much less the premium obtained. The naked put strategy succeeds if the underlying safety value is above the offered strike at expiration.<\/p>\n

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