An opening transaction in an option once the underlying asset is certainly not owned by the buyer composing the possibility. If a stock by which these types of an investor features written a call choice is after that called by the option holder, the buyer must buy shares in the market for distribution and it is therefore caught nude. Also called uncovered option.
a put or call option for which the vendor or buyer has no underlying security place
A theory or system of social reform which contemplates a complete reconstruction of society with a more just and equitable distribution of property and labor In popular usage the term is often employed to indicate any lawless revolutionary social scheme See Communism Fourierism Saint Simonianism forms of socialism...
How would you define naked option?