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| Let me try one more time.... So say you sold naked calls and a stock explodes and you can't meet the obligation. You as an individual would have a problem. It's probably securities fraud in the end. But the adult in the room is your broker to limit the amount of margin/leverage you can use in your account to prevent such things. So the call buyer on the other end of that I am almost sure would be made whole probably by the broker. And then after that the broker would likely go after the individual (the naked call seller), if there was anything left to be got (blood out of a turnip). Still awful answers? My apologies.... | |
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Who pays hedge funds go belly???
