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P M Desai D Profile picture
P M Desai D
@PM_DesaiD
Passionate Options Trader and Investor. Feel free to ask me your trading queries. JOIN FREE TELEGRAM CHANNEL ALPHA TREND https://t.co/AF2cUun4Nx
Dec 9, 2021 • 7 tweets • 2 min read
The myth about unlimited loss
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In trading fraternity there is this common misconception that option selling has unlimited risk.

I am writing this thread to demystify the myth associated with option selling. The lowest a stock can drop is zero so there is a floor for maximum loss in put option. However there is no limit to how high a stock can rise and theoretically selling call option has unlimited risk.