Uncovered Put

Uncovered Put

A position in a short put option where (a) there isn’t an equivalent short-stock position (b) there are no deposits of cash equivalents or cash whose value equals the put’s exercise value. This is very risks for the writer, who has made a pledge to buy the stocks at a particular price chosen by the option buyer. It is also called a ‘naked put’.

Random Finance Terms for the Letter U

• Unauthorized Investment
• Unbiased Predicator
• Unbundling
• Unchanged
• Uncommitted Facility
• Uncovered Call
• Uncovered Put
• Undercapitalization
• Undercast
• Underemployment

Related posts:

1. Uncovered Call
2. Covered Put
3. Undercast
4. Undercapitalization
5. Unbiased Predicator