Thanks for the clarifications. I think I would rather side with the old timer's dual usage of the term "naked".
i'm not sure the math you are doing actually mean anything. i'm not sure how comparing the 15-16 put spread to the 11-12 put spread are telling you anything. the 15-16 put spread is slightly out of the money, but has a reasonable chance to expiring in the money. especially considering the range for the XLF. the 12 strike is over 25% away. if you think the xlf is going lower but don't want to just spend the premium on the 16 put, you can buy the 15-16 put spread. if you want to spend even less money, you can sell the 11-12 put spread against it to lower your net premium paid out.