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 ...

What will a stock be worth at a future date? Buying a call option bets on “more.” Selling a call bets on “less.” Here are 3 examples of call options trading. Many, or all, of the products ...

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 ...