spin , true , I would of close this trade too. I just made a point that at the time of exit r/r is not at 9:1 ( than why not to reverse it ?)
Paper profit means unrealized profit. It's not a naked put. More like a cash secured short put. I have the cash to buy the stock if the position really goes against me. Anyway, I closed the position at 0.4 and locked in a $6k profit. I'm rolling forward to the AAPL Nov 150 Put.
A cash-secured put is a naked put. Cash or margin don't "cover" puts, because they don't limit the loss. The term "secured" only refers to your ability to take assignment without getting a margin call. You can only cover a put by having an offsetting equity or option position in the same security, such as a calendar or a spread. Good for you. That was the smart trade.
Hey IV. The risk/reward may not be 9:1 but a noob often finds a way to give back a chunk of a naked write's profit
To be covered (for margin purposes) you'd need to be short the stock or own a put with the same expiration or longer/same strike or higher. Otherwise, you have to put up margin. In your case, tho you have the cash, you are not protected against loss. That's why it's called a "naked" put.