By selling a put option (uncovered or naked options), you are giving an option holder the right to sell an underlying stock or index at a particular strike price. Option sellers have obligations. Buying a put option requires the payment of a premium. The seller of the option gets to keep this premium as a gain if the option expires worthless. A trader who sells put options (also called the put writer) believes the market will rise.
In a flat to rising market, written puts (the selling short of put options) can provide a trader with extra income. If at expiry the price of the underlying security remains above the strike price of the put option, the put will expire worthless; a put seller will benefit by keeping the entire premium received when the option was sold.
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.