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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 unlimited risk.

Related Terms:

Uncovered Option
A short position where the writer does not have the underlying security (or call option) to ...

Refers to the option writer's (seller's) obligation to sell or buy a stock or other financial ...

Covered Call
A strategy that involves buying stock shares and selling calls. If the calls are assigned, the ...

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