naked option

/ˌneɪkɪd ˌɑpʃən/
IPA guide

Definitions of naked option
  1. noun
    a put or call option for which the seller or buyer has no underlying security position
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    type of:
    option
    the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited
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