Which one of the following is the riskiest form of speculati

Which one of the following is the riskiest form of speculation using option contracts? 1) Setting up a spread using call options 2) Buying put options 3) Writing naked call options and delta hedging 4) Writing naked put options

Solution

Ans option D

Writing a naked pit option is the riskiest because it has unlimited loss opportunity. But in rest of cases loss is limited