A 2X Max Loss (200% loss) is the result of setting a Stop Loss at 3 times the initial credit received.

For example, the /ES LT112 Naked Puts (NPs) usually give around $17.00cr. Thus, you would receive

$$ ⁍ $$

credit.

A 2X Max Loss on the NPs, would be

$$ ⁍ $$

This is equivalent to setting a Stop Loss at 3X the initial credit:

$$ \$17 \times 3 = \$51.00 $$

or,

$$ \$17 \times 3 \times 2 \text{ contracts} \times 50 \text{ /ES multiplier} = \$5100 $$

After we subtract the $1,700 credit we received, we get

$$ \$5100 - \$1700 = \$3400 $$

Therefore, a 2X Max Loss (200% loss) is the result of setting your Stop Loss at 3 times the initial credit received.