The sale of a call or put option without having an offsetting position on the underlying security.
The buying or selling (writing) of an option on an underlying asset which the buyer or seller of the option doesn't own.
An option written (sold) without an underlying hedge position.
The writing of an option with no underlying security position.
An option which is purchased or sold without an offsetting position in the underlying. See covered option
An option that is written without any corresponding security or option position as protection in the seller's account.
An option held on its own; ie. not used to hedge a holding in the underlying asset or another option.
a put or call option for which the seller or buyer has no underlying security position
an option that is not covered by an additional long call or put position, or by a long stock (call) or short stock (put) position
an Option written by the client when s/he does not hold an FX position against it
When you write, or sell, a call option but don't own the underlying instrument, such as a share, the option you're writing is described as naked. Because you collect a premium when you sell the option, you can make a profit if the underlying instrument performs as you expect, and the option isn't exercised. The risk you run, however, is that the option holder will exercise the option, and you'll have to buy the instrument at the market price in order to meet your obligation to sell. If that price has moved in the opposite direction from the one you expected — specifically if it has gone up instead of remaining steady or going down — buying could cost you a substantial amount of money, and you could have a net loss.
An option position where the trader sells an option but does not hold the underlying futures contract as a backstop against possible exercise of the option he has sold. Naked options have unlimited potential losses.
an option bought or sold without an offsetting position in the underlying. see also covered option
An option written (sold) without a position in the underlying asset.
An option held on its own with no underlying asset or other option.
A short option position in which the writer does not have the underlying commodity options
A short option position in which the writer does not have visible means of meeting the exercise requirement.
An option position that is not offset by an equal and opposite position in the underlying security.
E.g. the writer of a put option contract who is not short the underlying security. Or the writer of a call option does so without being long the underlying security.
An option held on its own and not hedged from market risk. The investor does not have a corresponding position in the underlying security.
Industry lingo for call or put options that are written and not covered or have another position that will limit their liability. In the case of call options, writers are naked if they do not own either the underlying security, a security convertible into the underlying security, or a long call at a strike price equal to or lower than the strike price that was written and that does not expire before the written call. In the case of put options, writers are naked if they do not either have a short position in the underlying security, a bank guarantee letter, or do not own a long put with a strike price equal to or higher than the strike price of the put that was written and that does not expire before the put that was written. See: Bank Guarantee Letter; Convertible Securities; Covered Call Option; Covered Put Option; Limited Liability; Long Position; Naked Position; Option Writer; Short Position; Uncovered Option; Underlying Security; Writing Naked
The sale of a call or put option without holding an equal and opposite position in the underlying instrument. Also referred to as an uncovered option, naked call, or naked put.
An opportunity to buy stock at a fixed price, offered by a seller who does not own the stock to back up the promise. If the buyer wants to exercise the option, the seller must purchase the stock at market price to make good on the offer.
An option position where the buyer or seller has no underlying security position.
The sale of a call or put option without holding an offsetting position in the underlying commodity.
The writing of an option without ownership of the underlying asset.