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Uncovered options

Business Uncovered call writingUncovered put writing

Uncovered Options
Selling a call option to open in which the seller does not own the underlying security position. Also called naked options.

 


Uncovered options
See: Naked options
Uncovered put
A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, ...

Generally, uncovered options are suitable only for experienced, knowledgeable investors who understand the risks and can afford substantial losses.
Also called a "naked option".

The nature of uncovered options means the writer's risk is unlimited. Underfunded pension plan A pension plan that has a negative surplus (i.e., liabilities exceed assets).

Also called uncovered options. NAREIT Share Price Equity Index A price-weighted index based on tax-qualified Real Estate Investment Trusts (REITs) listed on the New York Stock Exchange, American Stock Exchange, ...

A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.
Uncovered options
See: Naked options
Uncovered put ...

Also called "naked" puts, the writer has pledged to buy the stock at a certain price if the buyer of the options chooses to exercise it. The nature of uncovered options means the writer's risk is unlimited.

See also: Cash equivalent, Cash account, Exercise value, Covered Put, Banks

Business Uncovered call writingUncovered put writing

 
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