Leverage: No margin for error
Many Happy Returns
00:00
How to Buy Stocks and Sell Stocks in the Market
A naked call position is unlimited, because you actually draw the pay off. Subasic means you'll have to buy the stock at whatever price it's trading at. And of course, if you've got a naked call position, short call position, is unlimited as well. But then that very rapidly gets eaten up if the price of the stock goes above the strike price. So what you'll end up having is to sell your stock holding - which isn't great, but at least not disastrous.
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