Selling Call Options: Buying And

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 call if you expect the stock price to rise significantly. You pay a fee called a Premium . buying and selling call options

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) You don't have to wait for expiration

Limited to the premium you paid. If the stock doesn’t reach the strike price by expiration, the option expires worthless, and you lose 100% of your investment. You pay a fee called a Premium

The stock stays below the strike price. You keep the entire premium as profit.

Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right.

Note: Only sell "Covered Calls" (where you already own the shares) to limit risk. Selling "Naked Calls" has infinite risk and is not recommended for beginners. Limited to the premium received. 4. Key Terms to Know