Naked Option

What does it Mean? An option position where the buyer or seller has no underlying security position.
Investopedia Says... Naked options are very risky. Profits are huge if the underlying asset moves in the direction desired by the investor. On the other hand, a writer of a naked option can lose big if the underlying asset moves in the opposite direction.

Terms Related Links

Call Option
Naked Call
Naked Position
Naked Shorting

Terms Related Links
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