Sometimes when investors sell naked puts they assume a stock is in a long-term uptrend only to find out that it is not. When the stock falls, the investor ends up with in the money naked puts that are often deep and at risk of assignment. Recently an investor wrote to me regarding his KMP Stock (Kinder Morgan Energy Partners Stock) which he had sold puts at, watched the stock pull back and failed to act quickly to protect himself from losses. Now sitting with large losses he wonders what steps he could take to rescue his position and return to profitability.
Rescue Strategies For In The Money Naked Puts
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