Definition of Naked Option in English :
Define Naked Option in English
Naked Option meaning in English
Meaning of Naked Option in English
Pronunciation of Naked Option in English
Naked Option pronunciation in English
Pronounce Naked Option in English
Naked Option
see synonyms of naked optionNoun
1. naked option
a put or call option for which the seller or buyer has no underlying security position
WordNet Lexical Database for English. Princeton University. 2010.
Naked Option
see synonyms of naked optionn.
An opening transaction in an option when the underlying asset is not owned by the investor writing the option. If a stock on which such an investor has written a call option is then called by the option holder, the investor must purchase shares in the market for delivery and is therefore caught naked. Also called uncovered option.
The American Heritage ® Dictionary of the English Language, Fifth Edition copyright ©2018 by Houghton Mifflin Harcourt Publishing Company. All rights reserved.