Petty Officer receiving stolen picture (5)
I believe the answer is:
photo
'picture' is the definition.
(a photograph)
'petty officer receiving stolen' is the wordplay.
'petty officer' becomes 'po' (naval abbreviation).
'receiving' means one lot of letters goes inside another.
'stolen' becomes 'hot' (stolen goods are 'hot').
'po' going around 'hot' is 'PHOTO'.
(Other definitions for photo that I've seen before include "Snap - shot" , "Pic (abbr)" , "Camera picture" , "This race finish is very close" , "Snap, picture" .)