Definitions:

1. A type of investment strategy in which an invester sells or writes options without any underlying position in the security. NOUN
   • Naked options are generally not recommended for beginner investors due to their high risk.
2. A type of options trading strategy in which the trader sells an option without owning the underlying asset or corresponding position to cover the potential obligation. NOUN
   • Selling a naked option can be extremely risky if the stock suddenly skyrockets.

Synonyms:

• short call
• short put
• speculative options trade.
• uncovered option