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There are many different option trading strategies to choose from. This offers traders more flexibility than simply being long or short a stock. A put option is in-the-money if the option's strike price is above the price of the underlying stock. the underlying price, the strike price for the option in question, the current level of 

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12 May 2015 Have questions about naked options? Join us as we go over naked options from the very beginning. Learn everything about trading short puts and short calls! Be aware though, you may find references to long naked options. Make sure to look Why Sell Naked Options (versus defined risk strategies)?.