A naked call, also known as an uncovered call or short call, is a trading strategy where an investor sells a call option on an underlying asset without owning the underlying asset. This strategy is considered risky and is not recommended for beginners.

Here's how it works:

1. An investor sells a call option on an underlying asset, such as a stock or commodity, at a specified price (strike price).

2. The investor receives the premium from the buyer of the call option.

3. If the price of the underlying asset remains below the strike price at expiration, the option will expire worthless, and the investor gets to keep the premium.

4. However, if the price of the underlying asset rises above the strike price, the buyer of the call option will exercise the option, and the investor will be required to sell the underlying asset at the strike price, potentially incurring a significant loss.

The risks of selling naked calls include:

1. Unlimited potential losses: If the price of the underlying asset rises significantly, the investor may be required to sell the asset at a much lower price than its market value, resulting in a significant loss.

2. Margin calls: If the price of the underlying asset rises, the broker may require the investor to deposit more funds or sell the underlying asset to cover the potential loss.

3. Time decay: The option's value decreases over time, but the investor's potential loss remains unlimited.

To mitigate these risks, investors can consider buying a call option on the same underlying asset to cover their short position (a covered call strategy) or use other risk management techniques. However, selling naked calls is still a high-risk strategy that requires significant experience and knowledge.