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Fine Dictionary

naked option

ˈneɪkəd ˈɔpʃən
WordNet
  1. (n) naked option
    a put or call option for which the seller or buyer has no underlying security position
Usage in the news

AVerizon doesn't exactly advertise the option many call "naked DSL " (it prefers the more decorous term "stand-alone DSL "). ashingtonpost.com

AVerizon doesn't exactly advertise the option many call "naked DSL" (it prefers the more decorous term "stand-alone DSL"). ashingtonpost.com

Usage in scientific papers

From Figures 2 through 8, it is apparent to the naked eye that the multiscale model represents a vast improvement over the Heston model–especially, for call options with the shortest maturities.
A Fast Mean-Reverting Correction to Heston's Stochastic Volatility Model

This problem arises for a writer of a naked or a partially naked call option.
Optimal replication of random claims by ordinary integrals with applications in finance