Options Glossary
Naked or 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 deeper-in-the-money long call position. A short put position is uncovered if the writer is not short stock or long another deeper-in-the-money put.
Nasdaq
A national securities exchange (Operated by Nasdaq OMX).
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% of their 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.
NOBO
Nasdaq BX, Inc.
Non-equity option
Any option that does not have common stock as the underlying asset. Non-equity options include options on futures, indexes, foreign currencies, Treasury security yields, etc.
Not-held order
A type of order that 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.
NSDQ
Nasdaq Options Market, LLC
NYSE
A national securities exchange (Operated by NYSE Euronext).
NYSE Amex
NYSE American Options
NYSE Arca
NYSE Arca Options








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