A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security.
However, if not used properly, a naked call position can have disastrous consequences since a security can theoretically rise to infinity.
A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest options strategies.
A short call (AKA naked call/uncovered call) is a bearish-outlook advanced option strategy obligating you to sell stock at the strike price if the option is assigned.
The strategy's staggering risk stems from the investor's obligations should the stock unexpectedly rally and the call be assigned. The naked call writer has no.