How Can an Option Writer Take Care of His / Her Risk.. ?

Option writing is a specialized job, which is suitable only for the knowledgeable Share investor / Share Trader who understands the risks, has the financial capacity & has sufficient liquid assets to meet applicable margin requirements.



The risk of being an option writer may be reduced by the purchase of other options on the same underlying asset &  thereby assuming a spread position or by acquiring other types of hedging positions in the options /  futures & other correlated markets.
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