Since issuers
incur little risk with secured cards, these items commonly also have low fee structures and minimal requirements for approval.
Not exact matches
What diversification does do is reduce the long - term
risk of the portfolio — you give up a
little upside in exchange for not
incurring as much downside.
There is
little risk of the position
incurring runaway losses, unless for some unfathomable reason the trader closes the long call position - leaving the short call position open - and the stock subsequently surges.