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WordNet-Online
Definitions from WordNet | ||||
Definitions from the WebNaked OptionPart 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: | ||||
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