Chapter 06 · Section 6.1

Potential losses

Write Puts
Market Outlook   :  BULLISH
Profit Potential :  limited to the 
                    premium received
Loss Potential   :
Breakeven Point  :

Potential losses are:

a) practically unlimited.
Yes. Because a short put position holder has an obligation to purchase if exercised, he will be exposed to potentially large losses if the market moves against his position and declines. Continue
b) limited.