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eru
on Feb 20, 2016
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Secondary shops flooded with unicorn sellers
You describe selling a call. Not buying a put. (jessaustin is right about these.)
sk5t
on Feb 21, 2016
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No, I described the practical downside exposure of a short (or, the trader could put in a stop). It is no more "unlimited" than is the downside of buying a bunch of ultimately worthless options.
eru
on Feb 21, 2016
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Unless your options trade on an exchange, and they have a clearing house behind them. (The government doesn't let the clearing house fail.)
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