NAKED OPTIONS Option granted and left unhedged or exposed to potential exercising.
NEARBY MONTH The closest active trading month on a futures and options Exchange. For example, in October the nearby month will be November.
Naked Options
QQQQ and SPY uncovered Options trading.
RISK STATEMENT: The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved.
Selling naked options refers to a sold options contract with no hedge position in place. Such a position leaves the option seller (writer) exposed to ...
NASD ...
Two common ways to sell calls and puts vary greatly in degree of risk: writing covered options, and writing naked 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, cash or cash equivalents equal to the exercise value of the put.
Armed with the notion that 80% of all options will expire worthless, many traders are tempted to sell naked options. This strategy results in a limited profit and unlimited loss.
The one thing that investors should never consider is selling naked options. By buying a naked option all a investor is doing is getting some premium and limiting the upside.
Another question that may arise as we look at the structure of this trade is, are we naked options? The answer is NO! ...
Profiting from the trading of naked options does not require any complicated systems. We provide everything you need:
Name of the Underlying Security,
Strike Prices,
Expiration Dates,
Entry and Exit Prices.
Traders use time spreads to take advantage of time decay - the property of options being a decaying asset. However, due to the risk involved in selling naked options, a time spread protects the position buy buying an option in the next month.
Covered Call Writing, I don’t Sell Naked!
Covered call writing gives you all of the advantages that come with selling calls without the problems you get when you sell naked options.
 See also: Market, Options, Naked Option, Risk, Option
  
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