A key element of the GDS-Index is to determine a destination's environmental performance. We do this by examining aspects like a destinations air quality, their use of renewable energy sources and the performance of their public transport and waste disposal infrastructure. In a holistic approach to sustainability, the GDS-Index factors in the social performance of a destination, including elements such as the city's United Nations Human Development Index HDI and ranking in global corruption indices. For an events industry specific analysis, the GDS-Index evaluates the sustainable practices of industry suppliers such as hotels, caterers and venues.
Selling an option creates an the obligation of the seller to provide the option buyer with the underlying shares or futures contract for a corresponding long position for a call option or the cash necessary for a corresponding short position for a put option at expiration. If the seller has no ownership of the underlying asset or the corresponding cash necessary for execution of a put option, then the seller will need to acquire it at expiration based on current market prices. With no protection from the price volatility, such positions are considered highly vulnerable to loss and thus referred to as uncovered, or more colloquially, as naked. Naked options are attractive to traders and investors because they have the expected volatility built into the price.
Kenneth Trester. Here are ten ways to help mitigate that risk and reap greater rewards when executing this type of strategy. When it comes to options trading, it doesn't get much sexier than playing it naked.
In addition to the advice to stay away from naked options, many investors are encouraged to be long stocks. The price the put holder has the right to sell the stock at is the strike price. The goal of selling naked out of the money puts is that price will close above your strike price at expiration and the put will not be exercised. Intuitively, if the market price is higher than the naked put strike at expiration, the holder will not want to sell stock at a price below the market price and the put will not be exercised.