Short Call Option Examples If you’re bearish on a hypothetical XYZ company, you sell a short call option at $75 at a premium of $6 for three months. XYZ’s stock never reaches $75 in three ...
Selling an uncovered call is a bearish strategy that can benefit when the stock remains below the short call's strike price or falls. Like other short premium options strategies, naked call sellers ...
Conversely, when a trader sells to open a call option (a "short call"), it's a bet the stock will stay at or below the strike price through expiration. In other words, this premium-selling ...
The maximum profit occurs if the stock stays between the short put and short call strikes so that all the options expire worthless. However, the maximum loss happens if the price moves beyond the ...
The most interesting thing, of course, is the options position. There are two expirations with positions open on them; there are both long and short calls on the 2/21 expiration, and a traditional ...