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   Naked Option
   















 

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Naked Option

The Profit/Loss Patterns of Naked (Short) Options (2 graphs)
An option writing (sale) position collateralized by cash or securities other than those on which the option is written. The potential loss on a naked option position can be very large-in the case of a naked call on common stock, the possible loss is theoretically unlimited. See also Covered Call, Option Hedge, Uncovered Writer.

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