Skip to main content
Options and Futures

Uncovered call writing

A knowledgeable professor in finance would explain that a short call option refers to a position where the writer does not hold an equal position in the underlying security of the option contracts. This means that the writer has not invested in the asset, but has instead sold the option to someone else. This strategy is often used to generate income or to hedge against potential losses. It is important to note that the writer of a short call option is obligated to sell the underlying security if the option is exercised by the buyer.

Related terms

Buy On Close

Understand the meaning and definition of Buy On Close in the context of stock market, trading, and investments.

MORE
Certificate of Deposit (CD)

Understand the meaning and definition of Certificate of Deposit (CD) in the context of stock market, trading, and investments.

MORE
Discount Method

Understand the meaning and definition of Discount Method in the context of stock market, trading, and investments.

MORE
Offer

Understand the meaning and definition of Offer in the context of stock market, trading, and investments.

MORE
Market Reporter

Understand the meaning and definition of Market Reporter in the context of stock market, trading, and investments.

MORE
Commodity Pool Operator

Understand the meaning and definition of Commodity Pool Operator in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91