Uncovered Call
See Naked Call.
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Uncovered call
Definition:
A short call option position in which the writer does not own shares of underlying stock represented by the option contracts.
Uncovered calls is a situation in which the writer of the call has established a reasonable margin with a broker to ensure that the stocks associated with the call can be purchased is the call is assigned.
Uncovered call
An uncovered call is a short call option position where the writer does not own the underlying shares represented by the option contract.
Uncovered call
A short call option position in which the writer does not own shares of underlying stock represented by the option contracts.
Uncovered Call Option
An uncovered call writer must deposit and maintain sufficient margin with his broker to assure that the stock can be purchased for delivery if and when he is assigned. The potential loss of uncovered call writing is unlimited.
-Writing uncovered calls (Writing naked calls is the riskiest option strategy) - maximum gain is the premium.
Your maximum loss is unlimited.
The break-even point is the strike plus the premium.
unconditional Not limited by conditions uncovered call A position to sell (short) a call option where the seller (writer) does not... uncovered option A sold (written) call option or a bought put option whereby the trader does...
It involves writing both a covered call option and one or more uncovered call options. One of its objectives is to reduce some of the risk of writing uncovered call options, since the covered call provides some degree of protection.
Even those investors who use options in speculative strategies, such as writing uncovered calls, don't usually realize dramatic returns.
Naked writer
See Uncovered call writing and Uncovered put writing.
Narrow-Based
Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also broad-based.
This strategy is sometimes referred to as an "uncovered call" or a "short call".
Naked Option
An option position where the buyer or seller has no underlying security position.
Long calls and short uncovered calls: strike price plus premium.
2. Long puts and short uncovered puts: strike price minus premium.
3. Short covered call: purchase price minus premium.
4.
An option position that is not offset by an equal and opposite position in the underlying security. (see Options, Uncovered Call, Uncovered Put)
NASD ...
 See also: Uncovered, Call, Option, Stock, Underlying
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