Uncovered put

Uncovered put
A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. Also called " naked" puts, the writer has pledged to buy the stock at a certain price if the buyer of the options chooses to exercise it. The nature of uncovered options means the writer's risk is unlimited. The New York Times Financial Glossary

Financial and business terms. 2012.

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  • To put out of court — Court Court (k[=o]rt), n. [OF. court, curt, cort, F. cour, LL. cortis, fr. L. cohors, cors, chors, gen. cohortis, cortis, chortis, an inclosure, court, thing inclosed, crowd, throng; co + a root akin to Gr. chorto s inclosure, feeding place, and… …   The Collaborative International Dictionary of English

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