Uncovered Call Writing
A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.
A written option is considered to be uncovered if the investor does not have an offsetting position in the underlying security. See also Covered.
Uncovered Put Writing
A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.
A binary put option that always has the strike price equal to the prevailing asset price. This means that wherever the underlying asset price moves to, a new strike price is immediately and dynamically created. See also Over
The security subject to being purchased or sold upon exercise of the option contract.
Unit of Trading
The minimum quantity or amount allowed when trading a security. The normal minimum for common stock is 1 round lot or 100 shares. The normal minimum for options is one contract (which normally covers 100 shares of stock).