loading...
 

Answers

0

Votes

Thumbs up Thumbs down

An unhedged strategy making exclusive use of one of the following: Short call strategy (selling or writing call options), and short put strategy (selling or writing put options). By themselves, these positions are called naked strategies because they do not involve an offsetting or risk-reducing position in another option or the underlying security.

0

Votes

Thumbs up Thumbs down

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, where the investor owns the security shares that are eligible to be exercised under the options contract.

This strategy is sometimes referred to as an "uncovered call" or a "short call".

Source(s):

investopedia.com

0

Votes

Thumbs up Thumbs down

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

0

Votes

Thumbs up Thumbs down

An investment strategy in which one enters a position on option contracts without other, opposite options to hedge the risk. Unlike more complex spreads and straddles, which involve the purchase or sale of multiple options in order to profit in different ways, naked options are straightforward calls or puts. An investor using a naked option strategies makes a profit or loss depending on the movement of the underlying asset. Naked options are also called uncovered options.

0

Votes

Thumbs up Thumbs down

In forex trading, naked strategies can refer to price action strategy or analysis minus the lagging indicators to determine the trades.

0

Votes

Thumbs up Thumbs down

Naked Strategies is an investment strategy in which one enters a position on option contracts without other, opposite options to hedge the risk. Unlike more complex spreads and straddles, which involve the purchase or sale of multiple options in order to profit in different ways, naked options are straightforward calls or puts. An investor using a naked option strategies makes a profit or loss depending on the movement of the underlying asset. Naked options are also called uncovered options.

Source: http://financial-dictionary.thefreedictionary.com

0

Votes

Thumbs up Thumbs down

IMHO, trading with so called "naked strategies" is trading without any indicators attached to the screen. those people trading naked only depend on price action and ussually they do use support and resistance. also they use fib retracement. naked trading ould possible use "news" as well to map/predict the price movement.

0

Votes

Thumbs up Thumbs down

Naked strategies is a trade position not hedged from market risk.

0

Votes

Thumbs up Thumbs down

In option market:
An unhedged strategy making exclusive use of one of the following: Short call strategy (selling or writing call options), and short put strategy (selling or writing put options). By themselves, these positions are called naked strategies because they do not involve an offsetting or risk-reducing position in another option or the underlying security. Related: Covered option strategies. Antithesis of covered option.
An investment strategy in which one enters a position on option contracts without other, opposite options to hedge the risk. Unlike more complex spreads and straddles, which involve the purchase or sale of multiple options in order to profit in different ways, naked options are straightforward calls or puts. An investor using naked option strategies makes a profit or loss depending on the movement of the underlying asset. Naked options are also called uncovered options. See also: Covered options.

Related Questions

1 Answer

1 Answer

1 Answer