Glossary
Naked 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 long call position. A short put position is uncovered if the writer is not short stock or long another put.
NASD (National Association of Securities Dealers)
The National Association of Securities Dealers is an industry association of broker/dealers in the over-the-counter securities business. The NASD is a self-regulatory body and administers the NASDAQ stock market.
NASDAQ (National Association of Securities Dealers Automated Quotation system.)
Dissemination of quotations from the NASD and/or members thereof.
Net Position
The amount of currency bought or sold which have not yet been offset by opposite transactions.
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 percent of his or her 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.
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 which 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 trader 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
NYSE
New York Stock Exchange.