A naked or uncovered option position is one in which the writer of an options contract lacks either the shares or funds necessary to fulfill the terms of the contract should it be exercised by its ...

and the trader who wrote that option is short. The writer (short) of the put option receives the premium (option cost), and the profit on the trade is limited to that premium. A short put is when ...

Naturally Option Premium keep reducing in value with the passage of time. For an option writer (seller) it is beneficial as we have a sell position in option and value of it is reducing.