🏦LTB
SIE: Equity Securities
SIE practice questionhardLong/short positions

The writer of a naked call faces which risk profile?

  1. AUnlimited potential loss✓ Correct answer
  2. BPremium received only
  3. CUnlimited profit
  4. DLimited loss to premium
Explanation

Why AUnlimited potential loss

Naked calls feature unlimited loss if the stock rises sharply. Other answers do not account for risk exposure.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Related Equity Securities questions