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Can You Lose Infinite Money On Options?

January 24, 2024 by Ahmed Ali

Can You Lose Infinite Money On Options? In the case of naked selling of call options, the risk is theoretically unlimited. … The option seller is forced to buy the stock at a certain price. However, the lowest the stock can drop to is zero, so there is a floor to the losses. Can you

What Is The Downside Of Selling Covered Calls?

January 24, 2024 by Juan Martinez

What Is The Downside Of Selling Covered Calls? Cons of Selling Covered Calls for Income The seller’s profit is limited to the premium received plus the difference between the stocks purchase price and the options strike price. … A significant drop in the price of the stock (greater than the premium) will result in a