Glossary of Option Terms: Naked Option
Naked Option
Definition: An option written/sold without owning the underlying assets (see also "uncovered options"). Includes naked calls and puts. Profits are huge if the predicted move happens, but they are risky and losses can be just as large as profits.
Related Articles:
- Naked Options: Words of Caution for a Lucrative Options Strategy
- Limit Orders vs. Naked Puts - Getting Paid to Place Them On Your Favorite Stock
- Selling Naked Puts - Get Paid Now To Bargain Buy Your Favorite Stocks Later
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