Buying And Selling Call Options Today

You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer.

Stock XYZ is at $100. You buy a $105 Call for $2. If XYZ hits $110, your option is worth at least $5. You turned $2 into $5 (a 150% gain), while the stock only moved 10%. 3. Selling Call Options (Bearish/Neutral) buying and selling call options

Theoretically unlimited. As the stock goes up, the value of your option increases. You sell (or "write") a call if you

You don't have to wait for expiration. You can "sell to close" a bought call or "buy to close" a sold call at any time to lock in profits or cut losses. You buy a $105 Call for $2

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)

Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend.

The stock price is higher than the strike price.