Writing covered call options is more risky than writing naked call options.

Name: Writing covered call options is more risky than writing naked call options.
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Question

Writing covered call options is more risky than writing naked call options.

Quizplus · Accepted Answer

Writing naked call options is riskier because you sell the call option without owning the underlying asset, potentially facing unlimited losses if the asset's price rises significantly. Covered call writing involves owning the underlying asset, which limits the risk.

Writing Covered Call Options Is More Risky Than Writing Naked