Naked call writing is the technique of selling a call option without owning the underlying security. Being long a call means you have the right to.
A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest options strategies.
Naked option selling does not always mean huge loss and This “unlimited losses” feature comes only with Call options and the theory is that.
Watch an overview on selling naked calls and the impact of selling puts on your portfolio.
If you sell a call but you do not own 100 shares of the underlying stock, the option is classified as a naked option or uncovered option. You are exposing yourself.