Definitions
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun An investment containing two parts: (1) long stock, and (2) short call option. It is an income oriented strategy that is conservative in nature. The investor hopes to earn the time premium portion of the call option.
Etymologies
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Examples
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Unlike a covered call, which is about promising to sell what you actually own, a naked call is about promising to sell what you don’t actually own.
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