uncovered option
Definition
A call option written (uncovered call) or a put option purchased (uncovered put) without ownership of the underlying asset. also called naked option.
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Related terms:
covered call, covered put
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Stocks, bonds and mutual funds are the most popular asset classes and therefore get most of the market's attention, but there are other important investment opportunities every investor should know about as well, including options, futures, and currency. Although these investments are complex and usually intended for sophisticated investors, it's worth understanding what they are and how they operate in order to decide if they should play any role in your overall investment strategy.
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