If the stock drops you can:
- Buy back the put and accept the loss on the position.
- Buy back the put and sell a deeper OTM put to lessen the loss incurred.
- If you are still bullish let the put be assigned, then sell a Covered Call.
- Advanced - As the stock drops buy a put at a lower strike. This does not repair the Naked Put, but it stops major losses from occurring.
- PLEASE EMAIL ME IF THIS IS CONFUSING OR IF THERE ARE ANY QUESTIONS, I WANT TO TRY TO EXPLAIN SO I CAN LEARN BETTER. THANK YOU, EDWARD
