Topical Terminology > Uncovered Call Option
Uncovered Call Option
For Uncovered Call Option we have terms and definitions in 2 topics. The topics are Frauds and Scams and Investing.
Uncovered Call Option (Frauds and Scams) 
An uncovered call writer must deposit and maintain sufficient margin with his broker to assure that the stock can be purchased for delivery if and when he is assigned. The potential loss of uncovered call writing is unlimited. However, writing uncovered calls can be profitable during periods of declining or generally stable stock prices, but investors considering this strategy should recognize the significant risks involved.
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Uncovered Call Option (Investing)
An uncovered call writer must deposit and maintain sufficient margin with his broker to assure that the stock can be purchased for delivery if and when he is assigned. The potential loss of uncovered call writing is unlimited. However, writing uncovered calls can be profitable during periods of declining or generally stable stock prices, but investors considering this strategy should recognize the significant risks involved.
See Also: Call Option; Call Premium; Covered Call Option; Long Position; Options; Option Writer; Put Option; Uncovered Option; Underlying Security
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