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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.

Related Terms:

Naked
Selling naked options refers to a sold options contract with no hedge position in place. Such ...

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

Options
An option is a type of derivative - its value is derived from an underlying asset, ...





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