Naked strategies

Definition:

Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Forward delivery

A transaction in which the settlement will occur on a specified date in the future at a price agreed upon on the trade date.

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