Selling options has been described as an income strategy. What makes me uncomfortable is the risk is open-ended and one can lose more than what is put in. There are horror stories like James Cordier optionsellers.com whose fund specialises in options selling and he even wrote a book on it. He was acknowledged to be an expert and he definitely has the knowledge, yet he blew up. How do experienced traders here manage open-ended risks like those that come from selling options?