#1 ok so anything against the main series (CE or PE) is dangerous ?
i mean if its 23500
CE then ..
shorting is dangerous ..
if its 23500
PE then
Buying PE is dangerous ?
#2 how can a option run into unlimited loss ??
shorting CE means i am selling call option to the Buyer of CE..
if i am selling at 99 .. and buyer buys at 89 then its difference of 10 points ..
right ? so i will make 10*40 = 400 rs ?
correct ?
suppose option jumps my price of 99 (as i am shorting CE) .. i am having a SL ..109 ... so loss is -400 ... how it gets unlimited loss??
sorry for newbie like question..