Sentences with phrase «uncovered calls»

However, in a margin account, you can write uncovered calls on a margin loan.

Because there's no limit to how high a stock price can rise, there's no limit to the amount of money you could lose writing uncovered calls.

Some lesser known alternatives include currencies (excluding digital currencies like Bitcoin); mortgages (which can include your own mortgage); precious metals (like gold and silver bullion); private market investments (including specified small business corporation shares and exempt market securities); options (although CRA warns about writing uncovered call options or put options); and annuities (which are finally becoming more attractive as interest rates rise).

«In certain unusual circumstances, it might not be possible for uncovered call writers of physical delivery stock and stock index options to obtain the underlying equity securities in order to meet their settlement obligations following exercise.

Brokerage firms require that certain options transactions, such as writing uncovered calls, take place in a margin account.

For example, if you write an uncovered call, you face unlimited potential loss, since there is no cap on how high a stock price can rise.

For example, if you write an uncovered call and are assigned to meet the obligation to sell the underlying stock, you face unlimited potential loss, since there is no cap on how high a stock price could rise.

For this reason, many brokerages, like Vanguard, don't allow you to write uncovered calls.

In contrast, the writing of an uncovered call option, or the writing of a put option... may result in the registered plan being considered to be carrying on a business.»

This is especially true if he sells an uncovered call (he did not own the stock).

@JBKing Now if you wrote an uncovered call, then you'd have to go to the open market and puchase the stock to give to me and that purchase would show on the charts.

Uncovered calls are very risky.