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A comment on Do It Yourself Masters in Financial Engineering. Parent comment

Re:Do It Yourself Masters in Financial Engineering by genera on Saturday January 22, 2011 @02:23PM (#2130849)
By following Step 3, you will lose much more than whatever the amount was in Step 2.
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Re:Do It Yourself Masters in Financial Engineering by noname123 on Saturday January 22, 2011 @06:51PM (#2131376)
Very true. Forgot to mention that if you sell options, you have unlimited loss potential; so by definition, this fear should motivate you to learn about delta-hedging and risk management very soon.
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Re:Do It Yourself Masters in Financial Engineering by dedward on Sunday January 23, 2011 @09:56AM (#2132469)
Depends what kind of options you are selling - but I'd actually say explicitly leave out writing calls from the plan - that's not somewhere you want to go given the unlimited risk you face.
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