A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.

Uncovered Option is also known as a naked option - a written option is considered to be uncovered if the investor does not have an offsetting position in the underlying security. This is a much riskier strategy than a covered option.

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 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 trading instrument subject to purchase upon exercise.

The security subject to being purchased or sold upon exercise of the option contract.

Describing a security that is trading at a lower price than it logically should. Usually determined by the use of a mathematical model.

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).

The potential for prices to move up. Upside break-even The upper price at which a trade breaks-even.

A delta that can change due to the change of an underlying asset or a change in time expiration of an option.