sell call option

Option Strategy: Short Call

In the last blog post, we discuss Buying Call strategy which is used when you expect the underlying stock/index would rise. But when you expect the underlying stock/index fall you do opposite Sell Call Option. Sell Call option is also known as the short call strategy. It is used when the investor is very bearish about the stock/index. This is a risky strategy since, as the stock price / index rises, the short call loses money more and more quickly and losses can be significant if the stock price / index falls below the strike price.
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