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"Short call" might be a better phrasing than "writing unhedged Call Option". When someone mentions "unhedged Call Option" (as in the title), it usually means l
by dthakur 16y ago
"Short call" might be a better phrasing than "writing unhedged Call Option".
When someone mentions "unhedged Call Option" (as in the title), it usually means long call, not short call.
- steveplace 16y agoTechnically, a long call means you're hedged to the downside, and you payed a premium to protect yourself. Those that consider long calls unhedged are usually trading around a complex position (vertical or calendar spreads). It's not often I get to dump my option geekery on hn.