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Many option bets have uncapped losses.. If you buy a share of Coca Cola for $60, you could lose $60 if the company goes bankrupt. If you sell a naked call to
by mikeyouse 4y ago
Many option bets have uncapped losses.. If you buy a share of Coca Cola for $60, you could lose $60 if the company goes bankrupt. If you sell a naked call to earn the premium, you can in theory, lose an infinite amount of money.