Meaning UNCOVERED PUT: A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. The writer has pledged to buy the asset at a certain price if the buyer of the option chooses to exercise it. Uncovered put options limit the writer's risk to the value of the stock (adjusted for premium received.) Also called "naked" puts
More terms such as Uncovered put in Dictionary U.
- Definition Unit Benefit Formula:
- Examples Method used to determine a participant's benefits in a defined benefit plan. Involves multiplying years of service by the percentage of salary uncovered put definition.
- Definition Unlimited Tax Bond:
- Examples A municipal bond secured by the pledge to levy taxes until full repayment at an unlimited rate uncovered put explain.
- Definition Unfunded Pension Plan:
- Examples Provides for the employer to pay out amounts to retirees or beneficiaries as and when they are needed. There is no money put aside on a regular basis. Instead, it is taken out of current income uncovered put what is.
- Definition Underwriting Syndicate:
- Examples A group of investment banks that work together to sell new security offerings to investors. The underwriting syndicate is led by the lead underwriter. See also: Lead underwriter uncovered put meaning.
- Definition Uniform Commercial Code (UCC):
- Examples Collection of laws dealing with commercial business uncovered put abbreviation.
