I do agree with the statement that option selling has "unlimited-risk". And I would not dismiss the idea of "un-limited risk" as misconception or myth. Understanding option trading itself is daunting task and particularly option selling strategies are to be employed with great care. Theoretically option selling has "un-limited risk" (not Practically)
If option selling is considered to have unlimited risk, then could it be said that the option-buying is entirely risk free? No, because when you buy a option you pay a premium for it and that is the risk you are taking to earn "un-limited profit", again it is theoretical "un-limited profit". All option buyers book their profit at one level or other.
So, in driving car there is no every-day possibility of endangering life but still possibility of injury of serious nature. Likely, NIFTY would not go down 0 value in during contract period but there is still chance of substantial loss compared to the profit one would earn by collecting premium.
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