|
 |
||
 |
| This dictionary contains: 24549 financial terms |
 |
Naked option
|
|
Naked optionAn option position where the buyer or seller has no underlying security position.
RELATED TERMS--------------------------------------
Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.
Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Security
Piece of paper that proves ownership of stocks, bonds, and other investments.
SIMILAR TERMS--------------------------------------
Naked
An uncovered position such as the position of a writer of an option which is not covered by an opposite position in the underlying instrument.
Naked call
A call option position held by a writer who does not hold a long position in the stock on which the call has been written.
Naked option strategies
An unhedged strategy making exclusive use of one of the following: short call strategy (selling or writing call options), and short put strategy (selling or writing put options).
Naked position
A securities position that is not hedged from market risk.
Naked put
A put option whose writer does not have a short position in the stock on which he or she has written the put.
Naked shorting
The illegal practice of short selling shares that have not been affirmatively determined to exist.
Naked strategies
Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned.
Naked writer
Uncovered call writing and Uncovered put writing.
PREVIOUS AND NEXT TERMS--------------------------------------
Nagoya Stock Exchange
Established after World War II, one of the three major securities markets in Japan.
NAIRU or Non accelerating inflation rate of unemployment
Another name for the natural rate of unemployment.
Naive diversification
A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered.
Naked
An uncovered position such as the position of a writer of an option which is not covered by an opposite position in the underlying instrument.
Naked call
A call option position held by a writer who does not hold a long position in the stock on which the call has been written.
Naked option
Naked option strategies
An unhedged strategy making exclusive use of one of the following: short call strategy (selling or writing call options), and short put strategy (selling or writing put options).
Naked position
A securities position that is not hedged from market risk.
Naked put
A put option whose writer does not have a short position in the stock on which he or she has written the put.
Naked shorting
The illegal practice of short selling shares that have not been affirmatively determined to exist.
Naked strategies
Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned.
RELATED TERMS--------------------------------------
Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.
Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Security
Piece of paper that proves ownership of stocks, bonds, and other investments.
SIMILAR TERMS--------------------------------------
Naked
An uncovered position such as the position of a writer of an option which is not covered by an opposite position in the underlying instrument.
Naked call
A call option position held by a writer who does not hold a long position in the stock on which the call has been written.
Naked option strategies
An unhedged strategy making exclusive use of one of the following: short call strategy (selling or writing call options), and short put strategy (selling or writing put options).
Naked position
A securities position that is not hedged from market risk.
Naked put
A put option whose writer does not have a short position in the stock on which he or she has written the put.
Naked shorting
The illegal practice of short selling shares that have not been affirmatively determined to exist.
Naked strategies
Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned.
Naked writer
Uncovered call writing and Uncovered put writing.
PREVIOUS AND NEXT TERMS--------------------------------------
Nagoya Stock Exchange
Established after World War II, one of the three major securities markets in Japan.
NAIRU or Non accelerating inflation rate of unemployment
Another name for the natural rate of unemployment.
Naive diversification
A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered.
Naked
An uncovered position such as the position of a writer of an option which is not covered by an opposite position in the underlying instrument.
Naked call
A call option position held by a writer who does not hold a long position in the stock on which the call has been written.
Naked option
Naked option strategies
An unhedged strategy making exclusive use of one of the following: short call strategy (selling or writing call options), and short put strategy (selling or writing put options).
Naked position
A securities position that is not hedged from market risk.
Naked put
A put option whose writer does not have a short position in the stock on which he or she has written the put.
Naked shorting
The illegal practice of short selling shares that have not been affirmatively determined to exist.
Naked strategies
Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned.
We thank you for using the Financial Dictionary to search for Naked option. If you have a better definition for Naked option than the one presented here, please let us know by making use of the suggest a term option. This definition of Naked option may be disputed by other professionals. Our attempt is to provide easy definitions on Naked option and any other medical topic for the public at large.
This dictionary contains 24549 terms.
|
|