Saturday, August 24th, 2019

Counterparty Risk in Option Trading

November 26, 2009 by T.D. Thompson  
Filed under Options Trading Tips

Counterparty risk is an often-forgotten risk management matter in option trading. Counterparty risk is the risk that the seller of an option will not sell when the buyer chooses to exercise the option. You buy a put on IBM believing it will go down and it does, substantially. You exercise the option expecting to sell [...]