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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: BDR who wrote (179)	4/23/2001 2:16:43 PM
From: William	Read Replies (1) of 5205

Another caveat re the statement Option sellers profit most of the time but their potential losses are unlimited. is not completely accurate. Naked call writers have a potential unlimited loss. Covered call writers have no potential loss. Naked put writers loss is like buying a stock, but is not unlimited. So yes, avoid naked calls. But since this is a covered calls thread, that should not be an issue. William

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