EFTA Document EFTA01393130

writer's position). Uncovered call option writing is thus suitable only for the knowledgeable investor who un- derstands the risks, has the financial capacity and will- ingness to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements. 4. As with writing uncovered calls. the risk of writing put options is substantial. The writer of a put option bears a risk of loss if the value of the underlying interest declines below the exercise pr