Meaning 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 they do not involve an offsetting or risk-reducing position in another option or the underlying security. Related: Covered option strategies. Antithesis of covered option
More terms such as Naked option strategies in Dictionary N.
- Definition Normal Backwardation Theory:
- Examples Holds that the futures price will be bid down to a level below the expected spot price naked option strategies definition.
- Definition National Bank:
- Examples A commercial bank approved by the U.S. Comptroller of the Currency, which is required to be a member of and purchase stocks in the Federal Reserve System naked option strategies explain.
- Definition Nonqualifying Annuity:
- Examples An annuity that does not fall under an IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal naked option strategies what is.
- Definition Normal Probability Distribution:
- Examples A probability distribution for a continuous random variable that forms a symmetrical bell-shaped curve around the mean. This distribution has no skewness or excess kurtosis naked option strategies meaning.
- Definition Noncash Charge:
- Examples A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow naked option strategies abbreviation.
