Naked Call
Short call strategy written without owning the underlying asset, creating limited premium income and theoretically unlimited upside loss.
Short-option strategies that collect premium while creating assignment, margin, volatility, and payoff risk.
Naked and written option strategies cover positions where the trader sells option premium and accepts an obligation if the contract is exercised or assigned.
This section is about risk shape, not just vocabulary. A written option may look attractive because premium is received at entry, but the seller is taking the other side of someone else’s optionality. The key questions are whether the risk is covered, cash-secured, spread-defined, or naked, and whether the account can survive a fast move before the position is closed.
Use this section when comparing naked options, naked calls, naked puts, and broader option writer strategies.
Written-option analysis usually starts with five practical checks:
For broader option mechanics, step back to Options. For covered or spread-defined structures, use the covered-call, protective-put, spread, and iron-strategy sections nearby.
This section is not a recommendation to sell options. It is a map for understanding why short-option premium can be small relative to the loss a trader accepts, especially when the position is uncovered or poorly sized.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Short call strategy written without owning the underlying asset, creating limited premium income and theoretically unlimited upside loss.
Option written without owning the underlying asset or a fully offsetting hedge, creating large assignment and margin risk.
Short put strategy written without a full hedge or cash-secured plan, creating premium income and downside purchase risk.
Strategies that sell option premium while managing assignment, volatility, margin, and payoff risk.