uncovered option definition by American Heritage Dictionary
nounThe American Heritage® Dictionary of the English Language, 4th edition Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
uncovered option - Business Definition
uncovered option - Investment & Finance Definition
An option position in which the writer doesn’t own the underlying securities. If the option is exercised, the writer has to purchase the underlying securities in the market, which may result in a loss. Also called naked option.