Stock options are powerful investment vehicles investors use to generate profit and mitigate risk in their portfolios. Learn how they work and effective strategies.

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 ...

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 ...

In general, an option seller would like to see implied volatility decline, which would reduce the cost to buy back the contract. However, because the short call spread involves both a sold option ...

but don’t think it will go up significantly in price in the short term. An investor like this would write a one call option for every 100 shares of the stock they own with a strike price similar ...

The passage of time, all else being equal, would positively affect this strategy at the beginning of the trade until the short-term option expires. After that, the strategy is only a long call ...

The options combination is as follows: One short straddle is equal to or greater than one short ATM call and one short ATM put One long strangle is equal to or greater than one long OTM call and ...