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There are special risks associated with uncovered option writing, which exposes the investor to potentially significant loss. Therefore, this type of strategy may not be suitable for all customers approved for options transactions.
NOTE: It is expected that you will read Characteristics and Risks of Standardized Options available from TradeStation Securities. In particular, your attention should be directed to the chapter entitled Risks of Buying and Writing Options. This statement is not intended to enumerate all of the risks entailed in writing uncovered options.