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Strategies & Market Trends : Contrarian Investing

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To: fedman who wrote (413)	10/2/2006 10:46:15 AM
From: pcyhuang	Read Replies (2) of 4080

fedman: The real risk of a naked call option writing is what statisticians call the "tail end of a normal curve" in the science of probabilities. Translating this into layman's terms, it means that the risk is in the least expected occurrences -- e.g., suddenly a take over announcement or a gap up in the stocks for some other unexpected reasons. I have seen fortunes lost in these types of least-expected events.... pcyhuang

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