nope you're mistaken. if you sell a put and do not short the underlying, it is considered a naked position. the amount of cash you have is irrelevant. the OP sold puts naked. they happen to be cash secured.
I guess you did not notice I posted that in chitchat. Anyhow I have traded in and out of GE it is one of my favorite stocks to trade in different ways (long or short, write puts or calls etc..) I only write cash secured put contracts and I always take into consideration the probability of assignment VS fair value of the options contract etc.. If I did get assigned I will just turn around and write calls on the equity one month forward. shareholders need insurance, someone needs to provide insurance for the masses
KINGOFSHORTS, what broker are you using and what is their policy on naked puts? and does it matter to them whether it's a cash secured put or not?
blackjack is 100% correct. i'm sick of all these new terms and names they come up with for different option strategies just to make them more retail friendly. they must have saw how much commish they made from naive retail custys using covered calls and figured if they paint more pretty names and imply safety to a strategy, the more coin they can make from them. back when i started trading options in 1984 it was just naked, doesn't matter how much cash u had in ur acct. kinda like saying if i had 1mm cash in my acct and i sold 1 GE call. my 1mm would easily cover any adverse move in GE therefore it is cash secured. ridiculous! it is still naked.
I wrote 10 more puts at 1.39 a contract. Total contracts now 25 To me the term Cash secured put is more accurate since it is not purely naked ie: you do have the actual cash to cover the underlying if it is put to your account. You can say a cash secured put contract is a limit order where you collect premiums selling time value VS just having a GTC order for 2500 shares. Obviously you should only write puts if you are comfortable and can sleep at night knowing you are obligated to take assignment and do not have a problem with it. Never take a position you do not feel comfortable with and have an idea of all the possibilities involved.