> Your downside is never capped, of course. Of course your downside is capped. You're never going to wake up one day and owe Microsoft a billion dollars. A re

> Your downside is never capped, of course. Of course your downside is capped. You're never going to wake up one day and owe Microsoft a billion dollars. A real example of uncapped downside is when you sell call options on a stock, or short a stock. You actually can wake up one day to your broker telling you you need to find millions of dollars right now because the market moved against you. And it can get worse and worse, the downside is truly uncapped.