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Investing Glossary: Naked option strategies

Copyright 2009, Campbell R. Harvey. All Rights Reserved.
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Term:
Naked option strategies
Definition:
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.



 

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