What Is the Primary Risk Exposure for the Seller (Writer) of an Uncovered Call Option?

The primary risk for the seller (writer) of an uncovered, or naked, Call Option is theoretically unlimited loss. If the underlying cryptocurrency's price rises significantly above the strike price, the seller is obligated to sell the asset at the lower strike price.

Since there is no limit to how high the crypto price can climb, the potential loss for the seller is unbounded. This strategy is extremely high-risk and typically only undertaken by experienced traders.