Home > Term: uncovered call
uncovered call
A short call option position in which the writer does not own shares of underlying stock represented by the option contracts. Uncovered calls are much riskier for the writer than a covered call, where the writer of the uncovered call owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the asset at the current market price. Also called a "naked" asset.
- Sõnaliik: noun
- Valdkond/domeen: Financial services
- Category: General Finance
- Company: Bloomberg
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