Options Glossary: N
Naked Uncovered option
A short option position that is not fully collateralized if notification of assignment is received. A short call position is uncovered if the writer does not have a long stock or long call position. A short put position is uncovered if the writer is not short stock or long another put.
Net credit
Money received in an account either from a deposit or a transaction that results in increasing the account's cash balance.
Net debit
Money paid from an account either from a withdrawal or a transaction that results in decreasing the cash balance.
Neutral
An adjective describing the belief that a stock or the market in general will neither rise nor decline significantly.
Neutral strategy
An option strategy (Or stock and option position) expected to benefit from a neutral market outcome.
Ninety-ten (90/10) strategy
A conservative option strategy in which an investor buys Treasury bills (Or other liquid assets) with 90 percent of his or her funds, and buys call options (Or put options or a mixture of both) with the balance. The proportions of this strategy are subject to change based on prevailing interest rates.
Non-equity option
Any option that does not have common stock as the underlying asset. Non-equity options include options on futures and indexes.
Not-held order
A type of order which releases normal obligations implied by the other terms of the order. For example, a limit order designated as 'not-held' allows discretion to the floor broker in filling the order when the market trades at the limit price of the order. In this case, there is no obligation to provide the customer with an execution if the market trades through the limit price on the order. See also Discretion and Market-not-held order.
Talk to Options Professionals
Questions about anything options-related?
Call or chat with an options
professional now.
Chat with Options Professionals
Questions about anything options-related?
Chat with an options professional now.
Email Options Professionals
Questions about anything options-related?
Email an options professional now.
- Absolutely free, and your info is private
- Stop and return to classes anytime
- Curriculums that fit your needs
-
7SEP
-
17SEP
-
18SEP
