Assertion: call's risk | /r/HasProperty | unlimited
Facets:
value: theoretically
type: DEGREE
value: truly
type: DEGREE
Source sentences:
text: Shorting an option is selling that option, but the profits of the sale are limited to the premium of the option - and, the risk is unlimited.
text: If you own a put contract - sometimes referred to as the option writer - then the maximum financial risk involved can be limitless since the price of a stock is without theoretical limits.
text: Well, the maximum risk is unlimited.
text: In the case of naked selling of call options, the risk is theoretically unlimited.
text: When writing naked calls, the risk is truly unlimited, and this is where the average investor generally gets in trouble when selling naked options.
text: The risk of selling the call option is that risk is unlimited if the price of the stock goes up.
text: However, when selling an option, the maximum profit is the sale price and the risk is unlimited.
text: Entering naked call option trades is generally not an options trading strategy that a novice trader should pursue because the risk of so doing is theoretically unlimited.
text: Risk is unlimited, because the price of the underlying can rise indefinitely.
text: A high tolerance for risk is required, because risk is theoretically unlimited.