/biz/ - Business & Finance

>>17896670
>So buying already writer options means I can only lose what I purchased them for. But writing options means I could lose 100x the stock price when exercised?
That is correct. If you want to limit how much you can lose, you should only buy options. Buy calls if you think the price will go up, and buy puts if you think the price will go down. If the option goes up in price, you can sell it before expiration. If it goes down, you can either hold it until it expires or sell it at a loss. But you only ever lose what you spent on it initially.