A short call option position in which the writer does not own sufficient underlying security to cover this position.
A call option sold without owning the underlying. Also called a naked call.
short call option position in which the writer does not own shares of underlying stock represented by the option contracts. Uncovered calls are much riskier for the writer than a covered call, where the writer of the uncovered call owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the asset at the current market price. Also called a "naked" asset.
short call option position in which the writer does not own shares of underlying stock represented by his option contracts. Also called a "naked" asset, it is much riskier for the writer than a covered call, where the writer owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the asset at current market price.