|
Direction |
Moderately bearish |
|
Strategy Type |
Income |
|
Legs |
Sold call |
|
Max Reward |
Premium Recieved |
|
Max Risk |
Unlimited |
|
Time Horizon |
Long or short |
|
Risk Profile |
High risk |
|
|
|
Description
Investors profit from the option premium however must pay the buyer the difference between the stock price and the exerscize price.
Steps Involved
Sell call
Rational
Calls can be sold when investors expect the stock price to fall below the exerscize price.