Uncovered Options Trading System
Warehouse Receipt is a document certifying possession of a commodity in a licensed warehouse that is recognized for delivery purposes by an exchange.
Warrant is an issuer-based product that gives the buyer the right, but not the obligation, to buy (in the case of a call) or to sell (in the case of a put) a stock or a commodity at a set price during a specified period.
Warrant or Warehouse Receipt for Metals is a certificate of physical deposit, which gives title to physical metal in an exchange-approved warehouse.
Wash Trading occurs when entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader's market position. The Commodity Exchange Act prohibits wash trading. Also called Round Trip Trading, Wash Sales.
Weak Hands term used in connection with delivery of commodities on futures contracts, the term usually means that the party probably does not intend to retain ownership of the commodity; when used in connection with futures positions, the term usually means positions held by small speculators.
Weather Derivative is a derivative whose payoff is based on a specified weather event, for example, the average temperature in Chicago in January. Such a derivative can be used to hedge risks related to the demand for heating fuel or electricity.
Wild Card Option refers to a provision of any physical delivery Treasury bond or Treasury notes futures contract that permits shorts to wait until as late as 8:00 p.m. on any notice day to announce their intention to deliver at invoice prices that are fixed at 2:00 p.m., the close of futures trading, on that day.
Winter Wheat is wheat that is planted in the fall, lies dormant during the winter, and is harvested beginning about May of the next year.
Writer is the issuer, grantor, or seller of an option contract. Writer is a person who sells an option and assumes the potential obligation to sell (in the case of a call) or buy (in the case of a put) the underlying futures contract at the exercise price. Also referred to as an Option Grantor.
Yield is a measure of the annual return on an investment.
Yield Curve is a graphic representation of market yield for a fixed income security plotted against the maturity of the security. The yield curve is positive when long-term rates are higher than short-term rates.
Yield to Maturity is the rate of return an investor receives if a fixed income security is held to maturity.
Zero Coupon refers to a debt instrument that does not make coupon payments, but, rather, is issued at a discount to par and redeemed at par at maturity.
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.