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What Is a Naked
Option?
When buying an
option with a single
strike price, that
option is called a
naked long option.
On the other hand,
selling an option of
a single strike
price is called a
naked short option.
For example, if you
buy an option of
AAPL 130, you are
holding a naked long
position. If you
sell an option of
AAPL 130, you are
holding a naked
short position.
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