✅ As a writer, you sell barred calls to collect premium while capping your risk. If barrier is hit, you’re off the hook.
A: Yes, writing a barred call collects premium but you face unlimited risk if barrier not hit? No – as writer, your max loss is capped because option knocks out if barrier hit. But if barrier never hit, you pay the full payoff (stock price minus strike). So writing is dangerous if barrier is far away. barred call
A: Most OTC barrier options use continuous monitoring (any tick). Some exchange-listed barrier options (rare) use daily closing prices. ✅ As a writer, you sell barred calls