- naked option
naked option see option 3
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- naked option
An opportunity to buy stock at a fixed price, offered by a seller who does not own the stock to back up the promise. If the buyer wants to exercise the option, the seller must purchase the stock at market price to make good on the offer.Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
Look at other dictionaries:
Naked Option — A trading position where the seller of an option contract does not own any, or enough, of the underlying security to act as protection against adverse price movements. If the price of the underlying security moves against the trader, who does not … Investment dictionary
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naked option — noun a put or call option for which the seller or buyer has no underlying security position • Hypernyms: ↑option … Useful english dictionary
naked option — Fin an option in which the underlying asset is not owned by the seller, who risks considerable loss if the price of the asset falls … The ultimate business dictionary
naked option strategies — An unhedged strategy making exclusive use of one of the following: short call strategy (selling or writing call options), and short put strategy (selling or writing put options). By themselves, these positions are called naked strategies because… … Financial and business terms
Naked option strategies — An unhedged strategy making exclusive use of one of the following: Long call strategy (buying call options ), short call strategy (selling or writing call options), Long put strategy (buying put options ), and short put strategy (selling or… … Financial and business terms
naked option position — An open options contract that is not covered by an offsetting position in the underlying futures commodity or by another options contract against which it can be spread. Chicago Mercantile Exchange Glossary … Financial and business terms
option — op·tion 1 / äp shən/ n 1: the power or right to choose; also: a choice made or available 2: a privilege of demanding fulfillment of a contract on any day within a specified time 3: a contract conveying in exchange for the payment of a premium a… … Law dictionary
naked — Bare; wanting in necessary conditions; incomplete, as a naked contract (nudum pactum), i.e., a contract devoid of consideration, and therefore invalid; or, simple, unilateral, comprising but a single element, as a naked authority, i.e., one which … Black's law dictionary