Uncovered Options Trading System
Backwardation: Backwardation is market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for June is $400.00 per ounce and that for December is $390.00 per ounce, the backwardation for five months against June is $10.00 per ounce. (Backwardation is the opposite of contango).
Delivery: Delivery is the transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. It is the tender and receipt of the actual commodity, the cash value of the commodity, or of a delivery instrument covering the commodity (e.g., warehouse receipts or shipping certificates), used to settle a futures contract. Each futures exchange has specific procedures for delivery of a cash commodity. Some futures contracts, such as stock index contracts, are cash settled.
Delivery Month: Delivery Month is the specified month within which a futures contract matures and can be settled by delivery or the specified month in which the delivery period begins.
High: High is the highest price of the day for a particular futures or options on futures contract.
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Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.