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Uncovered Call

The following information is about Uncovered Call.

Uncovered Call Defined

A short call option position in which the writer does not own shares of underlying stock represented by the option contracts. Uncovered calls are much riskier for the writer than a covered call, where the writer of the uncovered call owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the asset at the current market price. Also called a "naked" asset.

This definition is in context to Finance. See more contextual defintions for Uncovered Call.


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