The payoff from a short call looks exactly like the inverse of the long call shown before: For every stock price below $20, the option expires worthless, and the call writer keeps the full cash ...

As the name indicates, the synthetic short spread replicates the risk/reward dynamic of a short stock position. By combining a long put and a short call at the same strike, the position offers ...

You like the prospects for Stock XYZ as it trades near ... Since you shelled out 1.42 for the long call and collected a premium of 0.15 for the short call, your net debit on the spread is 1. ...

A call option seller must sell the stock at the option's strike price if the long holder exercises early or if it expires in the money (ITM) by $0.01 or more at expiration. A short call sold at a ...

Short selling lets investors profit from declining stock prices by borrowing and selling shares, then repurchasing them at a lower cost. If the stock price rises, short sellers must buy back ...