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Uncovered Call Writing
A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts.

Uncovered Option
A written option is considered to be uncovered if the investor does not have an offsetting position in the underlying security.  See also Covered.

Uncovered Put Writing
A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.

Under
A binary put option that always has the strike price equal to the prevailing asset price. This means that wherever the underlying asset price moves to, a new strike price is immediately and dynamically created. See also Over

Underlying Security
The security subject to being purchased or sold upon exercise of the option contract.

Undervalued
Describing a security that is trading at a lower price than it logically should. Usually determined by the use of a mathematical model.  See also Overvalued and Fair Value.

Unit of Trading
The minimum quantity or amount allowed when trading a security. The normal minimum for common stock is 1 round lot or 100 shares. The normal minimum for options is one contract (which normally covers 100 shares of stock).