dtrader

Wall Street Breakfast: Must-Know News

axel...just a quick comment, Warren Buffet just made a deal where he has as one part the option to buy $5 billion of common shares of Goldman Sachs at $115. I guess he's been taking classes...

Honestly I know he made that comment but the context was probably in reference to the CDO's etc.

As long as ur long options the only risk u run is the premium u paid. That gives them less risk or at least a known fixed maximum risk before u enter a position.

Naked short options pose a high risk where u can loss more than u have in ur account.

People who want to short options can use credit spreads to protect their positions and risk.