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The most loss is theoretically unlimited because there is no cap on how high the value of the underlying safety can rise. Traders who purchase a easy call or put possibility don’t have any obligation to exercise that option. Any trader who sells an choice has a potential obligation. That obligation is met, or covered, by having a place in the security that underlies the choice. If the trader sells the choice however has no place within the underlying safety, then the position is alleged to be uncovered, or bare. Selling this sort of option creates the danger that the vendor might should rapidly purchase a place within the safety when the option buyer needs to train the option. Uncovered choices are bought, or written, options the place the vendor does not have a place within the underlying security.