Uncovered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries.
See Naked Call.
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What is the definition of Uncovered Option?
This is an option that is not back by a counterbalancing position that would help to mitigate any risks in the trade. This is also known as a naked option.
interest rate parity
An interest rate parity is a condition where the interest rates between two countries is the same as the change in currency rates between the two.
A short option position that is not fully collateralized if notification of assignment is received. A short call position is uncovered if the writer does not have a long stock or long call position.
Option: See Naked Option.
Underlying Commodity: The cash commodity underlying a futures contract.
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.
A written option is considered to be if the investor does not have an offsetting position in the underlying security. See also Covered.
Uncovered Option The buy or sale of an option without a position in the underlying futures contract; also known as a naked option.
Underlying Instrument A trading instrument subject to purchase upon exercise.
A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.
Uncovered - Another term for an open position.
Under-valuation - An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.
Position - An option position where stock has not been purchased or shorted to cover a sold call or a sold put. positions are typically referred to as naked positions.
Uncovered Option: Industry slang for call or put options that are written and not covered or have another position that will limit their liability.
Underlying Instrument: A trading instrument subject to purchase upon exercise.
A short call option position in which the writer does not own shares of underlying stock represented by the option contracts.
The uncovered options trading system was designed to satisfy the demands of mid-term oriented option traders who wish to place conservative trades using index derivates, for maximum returns and at minimum risk.
A short position where the writer does not have the underlying security (or call option) to hedge the unlimited risk position of his naked position. ...
Under Water ...
A short call or put option position which is not covered by the purchase or sale of the underlying futures contract or physical commodity.
Underlying Futures Contract ...
Learn how to make options time decay work to increase your portfolio.
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Uncovered call option writing
A short call option position in which the writer does not own an equivalent position in the underlying security represented by his or her option contracts.
Uncovered put option writing ...
What is an Call?
What Is a Fixed Assets Register?
What Is Buy Here Pay Here?
What Is Near Cash?
What Is Pollution Insurance?
What Is a Savings Club?
What Is Capital Recovery?
What Is an Economic Calendar?
A naked put (uncovered put) occurs when an investor sells a put option without buying another put establishing a spread position or without depositing funds to cover the position.
A naked put or put is an unhedged short put position. See also: Options Trading , Naked Option
Naked Option Strategy ...
Uncovered Option Also known as a naked option. A short position, not protected by offsetting options, in which the writer of the options lacks the stock or collateral that would be required upon assignment.
UMI Unamortized bond discount Unamortized premiums on investments Unbiased expectations hypothesis Unbiased predictor Unbundling Uncollected funds Uncollectible account Unconfirmed Letter of Credit ...
Uncovered : Another term for an open position.
Unit : See Contract.
Unit of Account : A device designed to provide a consistent value with va...
Up Tick : A transaction executed at a price greater than the previous tra...
If the writer did not hold either, he would have an or "naked" position.
Selling stock options on their own is known as selling Naked or Uncovered options. They are extremely risky, and can result in unlimited losses.
Naked Option or Option is where an investor buys or sells an option without owning the underlying security.
This is also known as uncovered writing.
National Association of Securities Dealers (NASD): The industrywide selfregulatory organization of the securities industry.
Neutral spread: Another name for a delta-neutral spread.
^ a b The trading that generated losses ended in 2000 but the losses were not until 2006. The USD equivalent shown here is for 2000; it is often quoted as USD 1.9 bn which is the euro amount converted at the 2006 FX rate.
None of the audits found any material issue with confirmations until 2012, when the electronic confirmation process was started and the fraud was uncovered.
option (investment & finance)
underbanked (investment & finance)
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In addition to these primary inefficiencies, researchers have uncovered a number of other factors that are correlated with returns. While a listing of these factors may be useful, it is worth making three points.
See also: Covered, Market, Stock, Option, Trading