Need an answer about option trading
Hi,
This is a hypothetical question. Lets say if someone has never traded options before and they start trading them whats the worst that can happen?
Will they end up loosing all their money (trading capital) or end up owing thousands of dollars? Assume you're using an online brokerage.
Thanks
lol
The worst thing is that they can loose all their traded money if not traded properly.
Thats what I thought as well. I mean you wont have a margin account plus brokerage wont let you sell calls or puts without collateral right?
Sell calls deep out of the money. You'll only make a cents per option, but you can't lose. ...it's free money.
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