This is an option position where the buyer or seller has no underlying security position.
These kinds of naked options are very risky. Profits are huge if the underlying asset moves in the direction desired by the investor. On the other hand, a writer of a naked option can lose big if the underlying asset moves in the opposite direction.
Tags: naked option, underlying security position
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Related posts:
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment