A sold (written) call option or a bought put option whereby the trader does...

A written option position that does not have a corresponding position in the underlying stock.

A short option position, also called a "naked" option, in which the writer does not own shares of underlying stock. This is a much riskier strategy than a covered option.

It is when a trader writes an option without owning the underlying security. It is a position with large risk. An uncovered option acts like an outright futures position if it is going against you.

A short call or put option position which is not covered by the purchase or sale of the underlying futures contract or physical commodity. Also referred to as a "Naked Option."

Underlying commodity Underlying stock Uptick rule Click here to return to the top of the page

This is sometimes referred to as a naked option. It is when a trader writes an option without owning the underlying security. It is a position with large risk.

The buy and sale of an option without a position in the underlying futures contract, also known as a naked option.

A written option is considered to be uncovered if the investor does not have a corresponding position in the underlying security.

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. A short put position is uncovered if the writer is not short stock or long another put.

The selling or writing of an option which is not covered by equivalent amount of the underlying asset owned by the seller or writer. Often called naked writing.

An option contract for which the owner does not hold the underlying security.

The writing of an option without ownership of the underlying asset.

See Naked Option.