Assertion: put's risk | /r/HasProperty | unlimited
Facets:
value: theoretically
type: DEGREE
value: truly
type: DEGREE
Source sentences:
text: With short sales, the reward is potentially limited—since the most that the stock can decline to is zero—while the risk is theoretically unlimited—because the stock's value can climb infinitely.﻿﻿ Despite its risks, short selling is an appropriate strategy during broad bear markets, since stocks decline faster than they go up.
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: 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: However, when selling an option, the maximum profit is the sale price and the risk is unlimited.
text: In the case of naked selling of call options, the risk is theoretically unlimited.
text: While the profit (if the stock drops in price) is limited to the premium received at the time the option is sold, the risk is unlimited.