A naked call is an options trading strategy in which an investor sells call options on a security without owning the underlying asset. In other words, the investor is selling the right to buy a security at a certain price (the strike price) without actually owning the security.

This strategy is also known as a short call or an uncovered call. It is considered a high-risk strategy as the investor is exposed to unlimited potential losses if the security's price rises above the strike price. This is because the investor would be required to buy the security at a higher price than the current market price to fulfill their obligation to sell it at the strike price.

Investors may choose to use a naked call strategy if they believe that the security's price will remain stagnant or decrease. If the security's price does not rise above the strike price, the investor can keep the premium received from selling the call option. However, if the security's price rises above the strike price, the investor will face significant losses.

It's important to note that naked call options trading is typically reserved for experienced investors who understand the risks involved and have a high tolerance for risk. It is also important to have a solid understanding of the underlying asset, as well as options trading in general.