Which options position is considered the riskiest?

Uncovered call writing is considered the riskiest options position because it involves selling call options without owning the underlying stock. When an investor writes an uncovered call, they take on an obligation to sell the stock at the strike price if the option is exercised by the buyer. Since the seller does not own the underlying shares, if the stock price rises significantly above the strike price, they must purchase the shares at the higher market price to fulfill the obligation, leading to potentially unlimited losses. The risk is compounded because there is no upper limit to how high the stock price can rise, making this strategy particularly dangerous in volatile markets.

In contrast, other options strategies, such as covered call writing, involve more limited risk as the seller already owns the shares. Writing puts has its own risks, but the maximum loss is limited to the strike price minus the premium received if the underlying stock's price drops to zero. Buying puts involves limited risk since the maximum loss is limited to the premium paid for the options. Therefore, uncovered call writing presents the highest level of risk among the choices provided.