uncovered option

uncovered option　无备兑期权　

Uncovered option for which the buyer or seller does not own the underlying asset.It is either a long position by the writer of a call option（right to buy）or a short position by the writer of a put option（right to sell）.Naked options carry a chance of huge profit as well as of great risk，depending on the market’s direction.Opposite of covered option.Also called naked option.