See Naked Call.
Investing terms and definitions starting with
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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.
Uncovered interest rate parity
An uncovered 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.
A short call or put option, where the option is not covered by a purchase or sale of the underlying asset.
Underlying Futures Contract ...
Uncovered Option: See Naked Option.
Underlying Commodity: The cash commodity underlying a futures contract. Also, the commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised.
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 uncovered if the investor does not have an offsetting position in the underlying security. See also Covered.
Uncovered Put Writing
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.
Underlying Asset (Security) ...
~ - 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.
Up tick - A transaction executed at a price greater than the previous transaction.
~ 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.
A fence or collar is an option strategy that establishes a trading ...
Selling uncovered options is very dangerous. The purpose of this section is not to encourage you to issue options but well to explain the mechanisms.
A short call option position in which the writer does not own shares of underlying stock represented by the option contracts. Uncovered calls are much riskier for the writer than a covered call, where the writer of the uncovered call owns the underlying stock.
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 ...
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 ...
An ~ short sale gain or loss is always short term, because the holding period is deemed to begin when the stock is purchased that is used to close out the short sale.
Each uncovered rod emits enough radiation to kill someone standing nearby in a matter of minutes. A conflagration could force all personnel to flee the site and render electronic machinery unworkable.
Naked or uncovered call writers must deliver (sell) the required number of underlying shares in T+ 3. Failure to deliver results in fail fees being levied on the client's broker who in turn may pass them onto the client.
What is an Uncovered Call?
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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 uncovered put is an unhedged short put position. See also: Options Trading , Naked Option
Naked Option Strategy ...
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.
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.
personal liability policy Umbrella policy UMI Unamortized bond discount Unamortized premiums on investments Unbiased expectations hypothesis Unbiased predictor Unbundling Uncollected funds Uncollectible account Unconfirmed Letter of Credit Uncovered call ...
~ : 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 uncovered or "naked" position. In such instances, margin would be required because the seller would be obligated to fulfill terms of the option contract in the event the contract is exercised by the buyer.
Selling stock options on their own is known as selling Naked or Uncovered options. They are extremely risky, and can result in unlimited losses.
40. Eye on FDA also uncovered that between 2006 and 2010, priority review products were approved by the FDA in a median time of 183 days, more than twice as fast as the European Medicines Agency, which took a median time of 403 days to approve this same class of drugs.
This is also known as ~ 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.
^ a b Groendahl, Boris (July 13, 2007).
None of the audits found any material issue with confirmations until 2012, when the electronic confirmation process was started and the fraud was ~.
The NFA auditors had little interaction with PFG’s outside auditor, which turned out to be a one-person shop.
~ option (investment & finance)
underbanked (investment & finance)
underbooked (investment & finance)
undercapitalization (investment & finance)
undercapitalized (investment & finance)
underdepreciation (investment & finance)
underfunded pension plan (investment & finance) ...
In addition to these primary inefficiencies, researchers have ~ 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.
In case you are dealing with a market maker then you should know that your positions may remain ~. Consequently, the broker will take the opposite side of your trade. In general lines, market makers produce profits when their clients lose money from the Forex market.
The bearish three-line strike candlestick pattern is another well-performing candle for the few samples I ~. Out of over 4.7 million candle lines searched, I found just 85 of them. Thus, the statistics and conclusions drawn from those numbers may change with additional samples.
Yes, the SENTIMENT of the investors in a stock or other investing vehicle can be ~ through studying how much price moves up or down & how many shares are bought or sold as price moves up & down. In the same vain, we can also see in the charts WHO is buying & selling.
If someone told you they had ~ a 300 year old secret that had the potential to bring great wealth, would you listen? If they could explain the mysteries behind the secret so that you could profit as well, would you be interested?
For nearly two years now, we have been ranking so-called "married" (or "protective") puts (as well as ~ options and covered calls). These married put positions consist of owing the stock and buying a put to protect that stock.
In fact, scientists have not yet ~ any dangerous 7 Keto side effects. Research subjects and study participants did not suffer any harmful side effects during testing.
Whether he has a unique thesis, or is simply ahead of the crowd, a successful investor relies on discovering something that others have not yet ~. The bottom line: We want to profit by selling our stock at a later point for a higher price to someone who did not share our early insight.
A general ledger account representing the ~ position in a particular currency. Such accounts are referred to as position accounts.
A general ledger account representing the ~ position in a particular currency. Such accounts are referred to as Position Accounts.
When a physical delivery ~/ naked call is assigned an exercise, the writer will have to purchase the underlying asset to meet his call obligation and his loss will be the excess of the purchase price over the exercise price of the call reduced by the premium received for writing the call.
Long calls and short ~ calls: strike price plus premium.
2. Long puts and short ~ puts: strike price minus premium.
3. Short covered call: purchase price minus premium.
4. Short put covered by short stock: short sale price of underlying stock plus premium.
You may often here about a trading method that has been ~, but nothing can compare to this unbelievable find from 1919. Voted as one of the greatest traders of all time, the proven results of Richard D Wyckoff work better today than they did when he first formulated them. Learn More..
In 2008, the government ~ a Ponzi scheme led by financier Bernard Madoff. The scheme defrauded investors of almost $65 billion over a period of 17 years, making it the largest Ponzi scheme fraud in history.
Why It Matters: ...
General Janet Reno said that the Justice Department's investigation, which produced tape-recorded evidence, ~ "numerous instances" of rival firm dealers' agreeing to help each other benefit financially by raising or lowering quoted prices.
The selling of a security that the seller does not own (naked or ~ short) or has borrowed (covered short). Short selling is a trading strategy.
The amount a buyer/seller of a futures contractor an ~ (naked) option seller (writer) is required to deposit and maintain to cover his daily position valuation and reasonably foreseeable intra day price changes.
Market capitalization Search for Term ...
MARGIN REQUIREMENT (OPTIONS) The amount of cash an ~ (naked) option writer is required to deposit and maintain to cover his daily position valuation and reasonably foreseeable intra- day price changes.
Confirmations: NFA and CME's Financial Match.com
The fraud at Peregrine Financial Group was ~ in July 2012 by the National Futures Association (NFA) which used an electronic bank account confirmation system. (Also see: Confirmations: Plugging Into Electronic Confirmations) ...
This strategy is sometimes referred to as an "~ call" or a "short call".
An option position where the buyer or seller has no underlying security position.
Open Interest is the number of options or futures contracts that are still ~ at the end of a trading day. A rise or fall in open interest shows that money is flowing into or out of a futures contract or an option. It is also a measure of liquidity.
One-time Presidential hopeful John Kerry sent $25,000 offshore around 1983, as evidenced by documents ~ by the Boston Globe. But John Kerry is no ordinary investor; no doubt he made an informed decision before placing his money in offshore bank accounts.
Here's the margin requirement for ~ ("naked") short options, from the Chicago Board Options Exchange's Margin Manual: ...
Margin Requirement (Options)
The amount of cash the writer of an ~ option is required to maintain in his account to cover daily position valuation and possible intraday price changes.
Conversion Account - A general ledger account representing the ~ position in a particular currency. Such accounts are referred to as Position Accounts.
After dissecting his situation over a period of a few weeks over our email exchanges, I soon ~ how he had blown out his trading account so fast.
The insurance that protects both the lender and the homeowner (borrower) against loss resulting from any defects in the title or claims against a property that were not ~ in the title search, and that are not specifically listed as exemptions to the coverage on the title insurance policy.
In the eyes of investors, it is one of the biggest corporate collapses of all time. However, there was much more to it than just a falling stock price. By the time the fraud was ~ in May 1997, investors had lost in the region of 6 billion Canadian dollars! ...
Proprietary trading should not be confused with activities such as market making and arbitraging. These are trading activities and the institution does not deliberately take significant ~ (unhedged) positions relative to the amount of trading.
Russian Stock Market - Investing Opportunity, but with High Political Risk
Russian stock market has recently posted outstanding returns. It provides investors with marginal trade and ~ shares sale options, futures and options.
8 Ways to Become Financially Independent: Most new investors don't realize that different types of income are taxed differently, grades in school have zero correlation with million-plus wealth, and niche markets can be a great opportunity to build wealth. These keys are ~ in a few short ...
One hundred million bucks for a new building. I tried to find the line item where the enterprising reporter ~ saw this, but I was unable to. It was nowhere in the 12-page OMB summary of the Department of Transportation's budget.
The first thing you should do is assume that you are not the first to hear about the "great breakthrough." Even though it may be news to you, and the story may be real, and you can't find anything about the company in chat rooms, it doesn't mean that you have ~ a secret.
The illegal practice of trading a stock based on private advance knowledge of an impending order or block trade that will likely affect the market price. 2. The parasitic (but not necessarily illegal) practice of trading in front of large public (but hidden) orders that may be ~ ...
When Nikki Jones and I created the Natural Squares Calculator, we tried to incorporate many of the different styles of date rings that Mr. Gann used. In combining the clockwise and counter-clockwise date rings, we ~ another of the exciting mysteries that make Gann research so richly ...
Writing options without covered by another options (e.g. spreads) or a position in the underlying stock (e.g. covered call/put) is called writing Naked (~) Options.
Easy prey: You're so excited about a new play ~ in your research that you can't wait to place a buy or sell order. Bad move, Charlie Brown. The first hour of the market day is often the worst time to enter new positions. They see you coming, sucker.
See also: What is the meaning of Covered, Market, Stock, Trading, Option?