Options Glossary

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Naked Option

An option written (sold) without an underlying hedge position.

Naked Position

A securities position not hedged from market risk.

Narrowing the Spread

The closing spread between the bid and asked prices of a security as a result of bidding and offering.

NASDAQ

National Association of Securities Dealers Automated Quotations system -- a computerized system providing brokers and dealers with price quotations for securities traded over-the-counter as well as for many New York Stock Exchange listed securities.

Near-the-Money

An option with a strike price close to the current price of the underlying tradable.

Net Change

The daily change from time frame to time frame. For example, the change from the close of yesterday to the close of today.

Net Profit

The overall profit of a trade.

New York Stock Exchange (NYSE)

The largest stock exchange in the United States.

Note

A short-term debt security, usually maturing in five years or less.