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In my understanding in buying options you can only lose the premium you pay upfront. Selling options however you can get burnt.
by loremipsium 6y ago
In my understanding in buying options you can only lose the premium you pay upfront.
Selling options however you can get burnt.
- DudeInBasement 6y agoDepends. You can sell a in money call, and buy 2x out of money calls. You only lose if the asset's price falls between your sell/buy. The point is selling isn't bad. Its not managing risk that kills you. And for this poor dude it did.