The document outlines the risks associated with being an option writer, including the possibility of being assigned an exercise at any time for American-style options, and the limitations on closing out positions once assigned. It also discusses the financial implications for writers of covered calls, who forgo potential profits from increases in the underlying asset's value.
doj/DataSet10/EFTA01393129.pdf
{"title":"Risks of Option Writers","document_type":"other","key_organizations":["OCC"],"reference_numbers":["EFTA01393129","SDNY_GM_00244731"]}