THE bare buttocks of a year-old man will remain engrained in the memories of Roma police officers after he went on a naked jaunt through the town. The three-hour pursuit began at 1am on Friday, August 9, when Roma police received a call from the public that a man was damaging pot plants at McDonald's on Bowen St. The witness identified the suspect to officers when they reviewed the CCTV footage with patrols launched to locate the culprit. He then picked up a windscreen wiper and smashed it on a petrol bowser before whipping himself with it. The offender then picked up a wheelie bin and launched it into the windows of the shop and fled the scene.
A naked call occurs when a speculator writes sells a call option on a security without ownership of that security. It is one of the riskiest options strategies because it carries unlimited risk as opposed to a naked put , where the maximum loss occurs if the stock falls to zero. A naked call is the opposite of a covered call.
Thus, naked calls are one means of being short a call. Many investors aren't sure if being "short a call" and "long a put" are the same thing. When you are long a put, you have to pay the premium and the worst case scenario will result in premium loss and nothing else.
A naked call is an options strategy in which an investor writes sells call options on the open market without owning the underlying security. This stands in contrast to a covered call strategy, where the investor owns the underlying security on which the call options are written. This strategy is sometimes referred to as an " uncovered call " or a " short call. A naked call gives an investor the ability to generate revenue without actually owing the underlying security. Essentially, the premium received is the sole motive for writing an uncovered call option. The upside to the strategy is that the investor could receive income in the form of premiums without putting up a lot of initial capital. Again, there is significant risk of loss with writing uncovered calls.