- A term describing a situation where there is no interest, exclusive control, use, or possession
- Describes a situation where the writer of an option does not have ownership of the commodity, the contract for the commodity, or the security
- The lack of proprietary rights indicated that the agreement was a naked one.
- Without owning the related commodity, the broker wrote a naked option.
- For this contract, a naked scenario arises when the control, use, or possession is absent.