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Market Wizard
OC, California, USA
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londonkid View Post
not necessarily true. In terms of downside risks if you sell an option spread it depends on the type of spread. Some spread strategies have limited downside risk and others have unlimited.

Selling spreads have limited, defined risk. Selling naked does not, unless it's selling a naked put, which has the risk capped at the instrument going to $0. He was referring to naked options, not spreads.

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