# Naked Short Put

> Do you have the buying power to actually take delivery of the stock at the strike?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift |
| Driver | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility |
| Direction | bullish / neutral |
| Max profit | the credit received |
| Max loss | the strike minus the credit received |
| Risk defined | Yes |
| Legs | -1 Put @K |
| Approval level | 4 (Uncovered short positions - the highest approval tier and margin requirement) |
| Experience | Advanced |

## Formulas

```text
Break-even: K - C
Max profit: C
Max loss: K - C
```

## Legs

1. -1 Put @K

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/short-put-naked)