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uncovered call


Definition
A short call option position in which the writer does not own the corresponding number of shares of the underlier, or has not deposited in a cash account an amount equal to the exercise value of the call. also called naked call. opposite of covered call.

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Options BasicsCovered call: A call option is sold in a stock already owned by the writer. This is an attempt to take advantage of a neutral or declining stock. If the option expires unexercised, the writer keeps th ... Read more


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