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Options Trading Terms: N

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NAKED CALL OR PUT:

Refers to a short option position that doesn't have an offsetting stock position. For example, a customer has a naked call if he sells a call without being long the quantity of stock represented by his short call or a long another call spread against it. He has a naked put if he sells a put without being short the quantity of stock represented by his short put or long another put spread against it. Compare to covered call or put.

FINANCIAL INDUSTRY REGULATORY AUTHORITY AUTOMATIC QUOTATION SYSTEM :

An electronic information network that provides price quotations to brokers and dealers for the more actively traded common stock issues in the OTC market. There are three levels to the FINRAAQ. Level I shows highest bid and lowest ask prices in the system for an OTC stock. Level II shows individual OTC stock market maker's quotes for an OTC stock. Level III is used by OTC stock market makers to enter their quotes into the FINRAAQ system.

NET CHANGE:

The change in the price of a stock or option from the closing price of the previous day.

NET POSITION:

The difference between a customer's open long and open short positions in any one stock or option.

NEW YORK STOCK EXCHANGE (NYSE):

Founded in 1792, it is the oldest and largest stock exchange in the United States. Options are not traded on the NYSE.

NOMINAL OWNER:

The role of a brokerage firm when customer securities are held in street name.

NON-MARGIN SECURITY:

Security that must be paid for in full. Call and put option contracts are examples of this type of security.

NOT HELD ORDER (NH):

An order that gives the floor broker discretion on time and price in getting the best possible fill for a customer. When entering a not held order, a customer agrees to not hold the broker responsible if the best price is in not obtained.

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