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A comment on Secondary shops flooded with unicorn sellers. Parent comment

Re:Secondary shops flooded with unicorn sellers by sk5t on Friday February 19, 2016 @10:57PM (#11138736)
Options vs. shorting are just two different ways to risk all your capital on a bet... the "unlimited" downside of a short position has a practical limit--it's when your broker forces your account to cover with buys (the short squeeze) and you zero out.
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Re:Secondary shops flooded with unicorn sellers by eru on Saturday February 20, 2016 @12:24AM (#11139014)
You describe selling a call. Not buying a put. (jessaustin is right about these.)
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Re:Secondary shops flooded with unicorn sellers by sk5t on Sunday February 21, 2016 @12:19AM (#11143415)
No, I described the practical downside exposure of a short (or, the trader could put in a stop). It is no more "unlimited" than is the downside of buying a bunch of ultimately worthless options.
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Re:Secondary shops flooded with unicorn sellers by eru on Sunday February 21, 2016 @08:10AM (#11144352)
Unless your options trade on an exchange, and they have a clearing house behind them. (The government doesn't let the clearing house fail.)
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Re:Secondary shops flooded with unicorn sellers by jessaustin on Saturday February 20, 2016 @12:04AM (#11138948)
Buying an option only risks the cost of the option.
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