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 ...