Naked Call Writing: A High Risk Options Strategy - naked call

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What Is a Naked Call? | The Motley Fool naked call


A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security. This stands in contrast to a covered call strategy.

A naked call is when a speculator or investor writes a call option without having a position in the underlying stock itself. To set up a naked call, an investor simply sells a call option without.

Naked call writing is the technique of selling a call option without owning the underlying security. Being long a call means you have the right to buy the security at a fixed price. On the other.

A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest options strategies because it carries unlimited risk as opposed to a naked put, where the maximum loss occurs if the stock falls to zero. A naked call is the opposite of a covered call.