This document outlines the special risks associated with uncovered option writing, emphasizing the potential for significant loss. It is intended for knowledgeable investors who understand these risks and have the financial capacity to incur substantial losses. The statement highlights the unlimited potential loss from uncovered call writing, substantial loss from uncovered put options, and the risks of combination writing. It also discusses the need for sufficient liquid assets to meet margin requirements and the potential unavailability of a secondary market for options.
doj/DataSet10/EFTA01454033.pdf
{"title":"Special Statement for Uncovered Option Writers","document_date":"2008-02","document_type":"financial","document_subtype":"financial risk statement","key_organizations":["Deutsche Bank Alex. Brown","Deutsche Bank Securities Inc."],"reference_numbers":["08-DBAB-0126 OM 14 A (2/08)","DB-SDNY-0111933","SDNY_GM_00258117","EFTA01454033"]}