Buying And Selling Call Options Direct

You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer.

If the stock skyrockets, you are obligated to sell the shares at the strike price, missing out on all gains above that level. buying and selling call options

Note: Only sell "Covered Calls" (where you already own the shares) to limit risk. Selling "Naked Calls" has infinite risk and is not recommended for beginners. Limited to the premium received. 4. Key Terms to Know You sell (or "write") a call if you

The stock price is higher than the strike price. Note: Only sell "Covered Calls" (where you already

High IV makes options more expensive. Buying when IV is low and selling when IV is high is a common strategy. 5. Steps to Trade

Stock XYZ is at $100. You buy a $105 Call for $2. If XYZ hits $110, your option is worth at least $5. You turned $2 into $5 (a 150% gain), while the stock only moved 10%. 3. Selling Call Options (Bearish/Neutral)