Yeah, that is true. But just about. And only in theory. Besides having futures equivalent margin is necessary. Otherwise who would in his right mind buy options? Everyone would be a big fish then! 
A couple of things that offset what you say. First, premium comes straight in your ledger as cash. Second, you don't have to check every second what is happening in the market( and having micro heartattacks as a result! :lol. And most importantly, real option writing is not done by the intra-day kind traders, who are used to mechanised buy/sell - sell/buy kind of trading. They are done by the people who have a bigger picture to follow.
On that basis, I take it you are not of them. Not even a common option writer, if you don't mind me saying! Otherwise you wouldn't be talking the ususal nonsense of 'umlimited risk' spread by the big fish to scare the dumbs!
As TraderRavi said in his thread: tell me, what is without risk in the share market?
A couple of things that offset what you say. First, premium comes straight in your ledger as cash. Second, you don't have to check every second what is happening in the market( and having micro heartattacks as a result! :lol
. And most importantly, real option writing is not done by the intra-day kind traders, who are used to mechanised buy/sell - sell/buy kind of trading. They are done by the people who have a bigger picture to follow. On that basis, I take it you are not of them. Not even a common option writer, if you don't mind me saying!
Otherwise you wouldn't be talking the ususal nonsense of 'umlimited risk' spread by the big fish to scare the dumbs! As TraderRavi said in his thread: tell me, what is without risk in the share market?
As for the matter of scaring, it's needs a bit of scaring for newbies, as it's a fact...unlt risk ltd profit, it takes only 1 time to rip u off 6 months to 1 year profit, so don't take it lightly
