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 ...

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 ...

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 ...

compared to OTM options, the percentage moves are smaller. Certain strategies call for ITM options, while others call for OTM options, and sometimes both. One is not better than another ...