Glossary - Naked (uncovered) Option
A short call position is uncovered if the writer does not have a long stock or a long call position. A short [put.aspx">write.aspx">writer does not have a long stock or a long call position. A short [put position is uncovered if the writer is not short stock or long another put.



Glossary definition courtesy of Glenn R. Pafumi, CFA at OptionTraderOne
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