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Uncovered call writing |
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Uncovered call writingA short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.Uncovered call writing Similar MatchesUncovered interest parityUncovered interest parityEquality of expected returns on otherwise comparable financial assets denominated in two currencies, without any cover against exchange risk. Uncovered interest parity requires approximately that i = i* + a where i is the domestic interest rate, i* the foreign interest rate, and a the expected appreciation of foreign currency at an annualized percentage rate. Uncovered Put writingUncovered Put writingA short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, Uncovered optionsUncovered optionsSee: Naked options UncoveredUncoveredSee: 'naked'. |
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