Here’s how short calls and long calls work and the key differences between the two. A long call is the purchase of a call option. A long call offers the right, but not the obligation ...
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 short call spread (or "bear call spread") is a strategy employed by traders who expect a stock to move sideways, or decline slightly, during the time span of the trade. The spread offers a ...
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 ...
The ability to create its own market is the strategic, the dominating, and the single most distinguishing characteristic of a ...
Two such strategies that are widely used but confuse traders on which one to use are Short Call Butterfly and Short Condor. This blog is all about short call butterfly vs short call condor ...
One such low-risk options strategy is Short Call Condor Options Trading Strategy which combines two different Options Spreads to create a single low-risk options strategy. However, as it includes ...
The higher the underlying volatility, the more premium the fund will collect for the short call positions. By collecting the premium for writing the call options, the fund is giving up the upside ...