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Uncovered Call Option
An option contract that is sold without holding an offsetting position in the underlier, thus exposing the seller to unlimited risk.
Uncovered Put Option
A type of options strategy where the seller of the put option does not have a sufficient position in the underlying asset, exposing them to potentially unlimited losses.
Digital Option
A financial instrument that provides a fixed return if the market price is above (for a call) or below (for a put) a certain level at expiration.
Bull Money Spread
A type of options strategy that is used when an investor expects a moderate rise in the price of the underlying asset.
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