naked option

1. 1.

   a put or call option for which the seller or buyer has no underlying security position

   Broaderoption

Questions about naked option

What does naked option mean?

naked option means "a put or call option for which the seller or buyer has no underlying security position".

Is naked option a common word?

naked option is banded "Rare" — specialist or archaic — most readers will not have met it. The band comes from how often the word appears in a large corpus of everyday English, not from an editor's impression.