5 ms·
By following Step 3, you will lose much more than whatever the amount was in Step 2.
by genera 16y ago
By following Step 3, you will lose much more than whatever the amount was in Step 2.
- noname123 16y agoVery true. Forgot to mention that if you sell options, you have unlimited loss potential; so by definition, this fear should motivate you to learn about delta-hedging and risk management very soon.
- dedward 16y agoDepends what kind of options you are selling - but I'd actually say explicitly leave out writing calls from the plan - that's not somewhere you want to go given the unlimited risk you face.