Meaning NAKED STRATEGIES: Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned
More terms such as Naked strategies in Dictionary N.
- Definition Net Position:
- Examples position subtracting the initial cost of setting up the position. For example, if 100 options where purchased for $1 each and the option is currently trading for $9, the value of the net position is naked strategies definition.
- Definition Nondiversifiable Risk:
- Examples Risk that cannot be eliminated by having a large portfolio of many assets naked strategies explain.
- Definition Net Quick Assets:
- Examples Cash, marketable securities, and accounts receivable less current liabilities naked strategies what is.
- Definition Normal Portfolio:
- Examples A customized benchmark that includes all the securities from which a manager normally chooses, weighted as the manager would weight them in a portfolio naked strategies meaning.
- Definition Negative Convexity:
- Examples characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may lose naked strategies abbreviation.