 A put option buyer is hoping for a decrease in the price of the underlying equity, and upon exercise or expiration will collect cash representing the difference between the strike price of the option and the price of the underlying equity.If the seller has sufficient cash to purchase the equity position, the risk of selling a naked put is somewhat less than the risk of holding the underlying stock or equity (considering the premium gained and the loss from decrease in the underlying stock price), while the benefit of the naked put sale is limited to the amount of premium gained.Persons considering purchasing a stock for a short term may instead sell a put on the stock because of reduced commission costs and the benefit of the premium received.