You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer.
Limited to the premium you paid. If the stock doesn’t reach the strike price by expiration, the option expires worthless, and you lose 100% of your investment. buying and selling call options
Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend. You sell (or "write") a call if you
The stock price rises above your strike price plus the premium you paid (the Breakeven ). If the stock doesn’t reach the strike price
A is a contract that gives the buyer the right (but not the obligation) to buy 100 shares of a stock at a specific price ( Strike Price ) before a certain date ( Expiration ). 2. Buying Call Options (Bullish)
Theoretically unlimited. As the stock goes up, the value of your option increases.
Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right.