Uncovered options are options that are not backed by another position. Sometimes referred to as a naked option, ...
Uncovered Option: See Naked Option.
Underlying Commodity: The cash commodity underlying a futures contract.
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, ...
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 - A written option is considered to be uncovered if the investor does not have a corresponding position in the underlying security.
Uncovered Option: Refers to a short option that is not fully collateralized. Also known as a naked option.
Uncovered Options
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.
Uncovered Option
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 ...
Uncovered Option
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 ...
Uncovered Options
Learn how to make options time decay work to increase your portfolio.
Stock Market Articles
investments and trading related articles directory.
Naked Uncovered option
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.
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.
naked option See uncovered option. naked position The holding of unhedged securities against market risk. naked put A short put option position, where the writer does not have the corresponding...
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.
For nearly two years now, we have been ranking so-called "married" (or "protective") puts (as well as uncovered options and covered calls). These married put positions consist of owing the stock and buying a put to protect that stock.
Naked Option
See Uncovered Option.
Naked writer
See Uncovered call writing and Uncovered put writing.
Margin Requirement (Options)
The amount of cash the writer of an uncovered option is required to maintain in his account to cover daily position valuation and possible intraday price changes.
The sale of a call or put option without holding an equal and opposite position in the underlying instrument. Also referred to as an uncovered option, naked call, or naked put.
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Futures-equivalent ...
Considering that one contract covers 100 underlying shares, that's a lot of money. Therefore, selling stock options on their own, also known as selling Naked or Uncovered options, is extremely risky.
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.
It is imperative, therefore, that the seller demonstrate the ability to meet any potential contractual obligations beforehand. In addition, the seller of uncovered options on interest rate futures assumes the potential for significant losses.
 See also: Uncovered, Option, Market, Trading, Risk
  
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