Uncovered call

A short call option position in which the writer does not own shares of underlying stock represented by his option contracts. Also called a " naked" call, it is much riskier for the writer than a covered call, where the writer owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the stock at market price. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • uncovered call — A short call option position in which the writer does not own shares of underlying stock represented by the option contracts. Uncovered calls are much riskier for the writer than a covered call, where the writer of the uncovered call owns the… …   Financial and business terms

  • uncovered call writing — A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts. Bloomberg Financial Dictionary …   Financial and business terms

  • Uncovered Option — A type of options contract that is not backed by an offsetting position that would help mitigate risk. “Trading naked”, as it is called, poses significant risks. However, an uncovered options contract can be profitable for the writer… …   Investment dictionary

  • uncovered option —   opzione scoperta   Contratto di option posseduto o venduto da un soggetto il quale non abbia una posizione nello strumento sottostante. Per es. un investitore che non possiede i relativi titoli di un opzione call da lui venduta …   Glossario di economia e finanza

  • Naked Call — An options strategy in which an investor writes (sells) call options on the open market without owning the underlying security. This stands in contrast to a covered call strategy, where the investor owns the security shares that are eligible to… …   Investment dictionary

  • naked writer — See uncovered call writing and uncovered put writing. Bloomberg Financial Dictionary * * * naked writer naked writer ➔ writer * * * naked writer UK US noun [C] FINANCE, STOCK MARKET ► someone who sells options (= the right to sell shares, etc. in …   Financial and business terms

  • Непокрытый опцион колл — короткая позиция по опциону колл, в которой пакет базисных активов продавцу не принадлежит. Если покупатель исполняет опцион досрочно, то продавец непокрытого опциона колл вынужден покупать активы по рыночной цене. По английски: Uncovered call… …   Финансовый словарь

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