Home > Terms > English, UK (UE) > 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.

0
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

Sysop02
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Accounting Category: Tax

Due diligence

The thorough investigation of a potential acquisition candidate, real estate investment, etc Often used to refer to the investigation of a company for ...

Featured blossaries

Smart Watch

Category: Technology   2 6 Terms

Top 10 Most Popular Search Engines

Category: Technology   1 10 Terms