WordNet-Online
Free dictionary and thesaurus of English. Definitions, synonyms, antonyms and more...
Hint: double-click any word to get it searched!

	Enter your search terms Submit search form
	Web www.wordnet-online.com

Definitions from WordNet

Definitions from the Web

Naked Option

Part of Speech: Noun

Definition: A naked option refers to an options trading strategy where the seller of the options contract does not possess the underlying asset, leaving them exposed to potentially unlimited risks.

Example sentence:

He sold a naked call option on the stock, hoping the price would stay below the strike price.

Part of Speech: Adjective

Definition: Pertaining to an option contract that is not backed by an underlying asset.

Example sentence:

The investor decided to take a risky approach by engaging in naked option trading.

Part of Speech: Adverb

Definition: Describes the act of engaging in options trading without owning the underlying security.

Example sentence:

He traded options naked, hoping for higher profits in the volatile market.

Related products on Amazon:

Options Trading Books

Options Trading Strategies