Share this site with del.icio.us Share this site with furl Share this site with stumbleupon Share this site with google Add this site to Yahoo Bookmarks Click here to add us to your favorites Subscribe to our Feed




naked option

Definition

Uncovered option for which the buyer or seller does not own the underlying asset. It is either a long position by the writer of a call option (right to buy) or a short position by the writer of a put option (right to sell). Naked options carry a chance of huge profit as well as of great risk, depending on the market's direction. Opposite of covered option. Also called uncovered option.


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z