An option buyer runs the risk of losing the entire amount paid for the option in a relatively short time. The risk of writing options is substantial and may incur large losses. The writer of an uncovered call forgoes the opportunity to benefit from an increase in the value of the underlying interest above the option price, but continues to bear the risk of a decline in value of the underlying interest. Strategies using combinations of positions, such as spread and straddle positions may be as risky as taking a simple long or short positions. This brief statement cannot disclose all the risks and other significant aspects of trading options. You should carefully study and consider whether such trading is suitable for you in light of your circumstances and financial resources before you trade.
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