Uncovered call

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Uncovered call
	• A short call option position in which the writer does not own shares of underlying stock represented by his option contracts. Also called a naked call, it is much riskier for the writer than a covered call, where the writer owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the stock at market price.

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	Embedded terms in definition
	Buy Call option Call Covered call Market Option Position Shares Short Stock Underlying Writer

	Related Terms
	Call Call an option Call date Call feature Call money Call money rate Call option Call premium Call price Call price bond Call price preferred Call protection Call provision Call risk Call swaption Conference call Covered call Covered call write Covered call writing strategy Deferred call Effective call price Equitize a margin call First call Implied call Irrational call option Margin call Provisional call feature Purchased call Put call parity relationship Sold call Synthetic long call Synthetic short call Uncovered put Yield to call

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