2min chapter

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19 - Notional Value and Risk in Theory vs. Risk in Practice

The Trade Busters

CHAPTER

The Notion of Value on a Naked Call

The notion of value at entry for a short call is dynamic. Let's say you sold the ten strike, but the stock went down to nine rits. You've already lost a hundred dollars there at expiration. But if you held that call, essentially the stock could still keep going up. So just something ty keep in mind.

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