I was at a derivative event and a guy was saying how Covered Calls are really risky and anyone who thinks different doesn't know anything about derivatives. I have read about Covered Calls, I didn't think they were risky. Naturally, I didn't say anything. I just agreed with the guy because everyone else was (I didn't want to look like I don't know anything about derivatives.) How are they risky? I thought the only risk is that you have potentially infinite opportunity cost if the stock sky rockets. But, I mean, that doesn't seem to be the risk he was talking about. He made it seem like an investor could lose all their money. I don't see how. Was he just being dramatic? Or is there something I don't know? I'm a little new to this.