Without the stock, the writer would be in a naked position if a call buyer demanded delivery at a later time.

"Banks don't let traders run such naked positions - just betting that rates will fall."

Grasping for the branches of a stunted tree, he held himself erect and in that naked position froze to death.

"We knew we had some open or naked positions on options we had to close out," said Gary Kennedy, Allied Irish's group director of finance and risk, in a conference call.