A naked put (also called an uncovered put ) is a put option contract where the option writer (i.e., the seller) does not hold the underlying position, in this case, a short equity position, to cover the contract in case of an assignment.
A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security. This stands in contrast to a covered call strategy, where the investor owns the underlying security on which the call options are written. Remember that no pice is high for a uptrending stock.
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