Short Naked Call
Options strategy · Level 4 · Naked options
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Sell a call without owning the stock or a higher call. You pocket the premium but owe the upside — with no ceiling.
Where Tradecraft teaches it
Level 4 · Naked options, in the lesson “What undefined risk means”: The top tier of this course’s approval ladder, and why these trades have no worst case you can fully write down.
Related terms
- Short StraddleSell an ATM call and an ATM put. Maximum theta collection — and maximum exposure to a big move.
- Short StrangleSell an OTM call and an OTM put. Wider profit zone than the straddle, smaller premium, same undefined risk.
- Naked optionA short option with no stock position or long option offsetting it; also called uncovered.
- Undefined riskExposure with no long option or stock capping the loss: unlimited for a naked short call (every dollar above the strike is lost) or short-stock-like…
- Calendar Spread – CreditBuy the near-term option and sell the longer-term one at the same strike.
- Diagonal Spread – Long leg expires firstBuy a near-term option and sell a longer-term one at a different strike.