An especially complex area of risk involves taxes. If you are like most people, you understand how taxation works, generally speaking. If an investor thinks the price of the instrument will fall, he can sell short the underlying instrument, as well as the corresponding call option. Users registered to the website can search and build tradable options strategies. These options strategies are created by combining various Stock or Index options available for trading in stock exchanges.
Users can also search for individual stock or index options. Strategies from the search results can be picked and viewed. CharacteristicsWhen to use: When you are bearish on market direction and also bearish on market volatility.A short is also known as a Naked Call. Naked calls are considered very risky positions because your risk is unlimited.