A short call option position in which the writer does not own the corresponding...
                                                            
                                                     
                        
                                                
                        
                        
                            Situation, which occurs when someone writes a call option on a stock but does not currently, own enough of the stock to cover the exercise of the option. Sometimes referred to as an uncovered call.
                                                            
                                                     
                        
                                                
                        
                        
                            A naked call is an option in which an investor sells a stock that he doesn't own and is very risky because the liability is unlimited. Because the use of this type of investment tool is very restricted in a mutual fund setting, it is prohibited in the Marketocracy competition.