2 ms·
> > doesn't betting against a stock have infinite loses? > Not with options. you maybe meant to say "not when you buy options": > 2. Sell a Call. This gives
by sigstoat 4y ago
> > doesn't betting against a stock have infinite loses?
> Not with options.
you maybe meant to say "not when you buy options":
> 2. Sell a Call. This gives someone the right to buy the stock at a certain price (and you promise to sell at that price). If the stock is below that price your profit is what you sold the call. Your maximum loss is infinite since a stock price has no (theoretical) limit.
- ALittleLight 4y agoBy this logic not buying a stock has infinite loss potential. The stock you didn't buy today might be worth anything tomorrow.