Short Put Enabled
Setting key
short_put_enabled
Default
OFF
What it does
Enables the short put structure (single naked put). A short put collects premium when the underlying stays above the strike, but has undefined downside risk if the underlying falls sharply. Restricted to margin accounts. Provides more premium than a put credit spread but accepts uncapped downside risk.
When to change it
Leave OFF unless you have a margin account and specifically want single-leg short puts. The put credit spread provides similar exposure with defined risk and is generally preferred.
Safe range
ON or OFF. Default OFF. Margin accounts only.
Example
20-delta short put on AMD at $140 strike. If AMD falls to $100 at expiration, max loss is approximately $4,000 per contract (minus the premium collected). No long wing to cap it.