3 ms·
They say selling call options is "picking up pennies in front of a steamroller": most of the time you collect premium, and then occasionally you get run over by
by chillacy 6y ago
They say selling call options is "picking up pennies in front of a steamroller": most of the time you collect premium, and then occasionally you get run over by a steamroller. This is the steamroller.
- blackrock 6y agoI think you misunderstood. It was meant for those who bought the GME calls, not for those who wrote the calls.
- chillacy 6y agoI was more pointing out that even though "More often than not, the calls will expire worthless." is true, the quote refers to the fact that buyers of calls have limited defined risk while sellers of naked call options have unlimited and undefined risk. That's the steamroller.