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Uncertainty
Refers to the variability of outcomes associated with a specific event or project. Uncertainty is used in a statistical sense when a decision maker has no historical information from which to develop a probability distribution.

Uncovered Call
A short call option position in which the writer does not own shares of underlying stock represented by his option contracts. Also called a "naked" call, it is much riskier for the writer than a covered call, where the writer owns the underlying stock. If the buyer of a call exercises the option to call, the writer would be forced to buy the stock at market price.

Uncovered Put
A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. Also called naked puts, the writer has pledged to buy the stock at a certain price if the buyer of the options chooses to exercise it. The nature of uncovered options means the writer's risk is unlimited.

Uncovered Writer
A seller or writer who has sold stock or a stock option contract for stock that he or she does not own. Also referred to as a naked writer.

Underlying Instrument
A trading instrument subject to purchase upon exercise.

Underlying Securities
1. Options: The security subject to being purchased or sold upon exercise of an option contract. For example, IBM stock is the underlying security to IBM options.
2. Depository receipts: The class, series and number of the foreign shares represented by the depository receipt.

Underwriting
The procedure by which investment bankers channel investment capital from investors to corporations and municipalities that are issuing securities.

Univariate
Involving only one variable.

Unlisted
A stock not listed on a stock exchange but traded on the Over-The-Counter market.

Unsystematic Risk
Firm-specific risk that is unique to a security and hence can be eliminated by forming diversified portfolios.

Upside
The potential for prices to move up. Also the potential risk taken on a directional trade.

Upthrust
Occurs when price moves above a pivot top and a widespread reversal ensues as follows:
1. Two previous closes are reversed
2. Close is below pivot top
3. Close is below opening and mid-range
4. Daily price range is greater than the previous day's range.

Utility
A subjective measure of value or satisfaction. Measures an individual's relative value or preference for a particular outcome or event in relation to another. In finance, it is usually associated with measuring a decision-maker's preferences regarding monetary gains or losses.