How To SELL A CALL Option - [Option Trading Basics]

Buy VPN
ReliableIPTV IPTV Private Server + IKS 1 Year No Monlthy Fees

Description:
Many people don’t understand that you can actually sell option contracts without having the stock, or without owning the other option side of the trade.

Selling options is more popular among professionals than buying option contracts. That is because when you sell option contracts, you can allow the time decay to work in your favor.

You need to understand that there are four parts to a trade. You can buy a call or sell a call and you can buy a put or sell a put.

When you’re a buyer of a call, you want stock prices to go up. When you’re a buyer of a put, you want stock prices to go down. When you’re a seller of a call, you want prices to go down, and if you’re a seller of a put, you want stock prices to go up.

Selling a call option is very similar to selling a car that is not on inventory. Car dealerships often sell cars that aren’t even on the lot, because you may want it in a different color, or with special features that they may not have at the time. So what they do is sell the car to you, and then they order it and make it especially for you. That’s often what happens, with selling call options.

What is a call option?

Most people buy calls, at least the beginners. When you buy a call, you want the stock to go up, you have a bullish outlook. However, selling a call means you’re looking for the stock to go down, you have a bearish outlook.

The way most people approach selling calls is they already have a stock position, and then they sell calls against it, in order to hedge or protect that investment. This is also known as a covered call strategy.

The advantage that you have when selling a call is that if the stock stands still, you make money, if it goes down, you make money, and if it goes up a little bit, you still make money. So there is a higher probability of success.

However, the disadvantages of selling a call option contract is that you have a capped or maxed profit, which means you don’t have unlimited profit potential, and also you have unlimited risk, because there’s unlimited loss potential, as the stock price continues to head higher.

In this video we’re going to look at the profit picture and risk profile when it comes to selling a call, and also I’ll show you how to sell a call on an options trading platform.

#sellingcall #calloption #optiontrading #tradingbasics #sellcall

Posted at: https://tradersfly.com/blog/how-to-sell-a-call-option/

🔥 GET MY FREEBIES
https://tradersfly.com/go/freebies/

🎤 SUBMIT A VOICE QUESTION
https://tradersfly.com/go/ask

👀 START HERE: FOR NEW TRADERS
https://tradersfly.com/go/start/

🎉 START HERE: OPTION TRADERS
https://tradersfly.com/go/start-options/

📈 MY CHARTING TOOLS + BROKERS
https://tradersfly.com/go/tools/

💻 MY COMPUTER EQUIPMENT
https://backstageincome.com/go/computergear/

💌 GET THE NEWSLETTER
https://tradersfly.com/go/tube/

🔒 SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

📺 STOCK TRADING COURSES
https://tradersfly.com/go/courses/

📚 STOCK TRADING BOOKS:
https://tradersfly.com/go/books/

⚽ GET PRIVATE COACHING
https://tradersfly.com/go/coaching/

🌐 WEBSITES:
https://tradersfly.com
https://rise2learn.com
https://backstageincome.com
https://mylittlenestegg.com
https://sashaevdakov.com

💌 SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

💖 MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/

📑 ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us!
Thank you to Watch/Download How To SELL A CALL Option - [Option Trading Basics] video
if you like this Video then please share video on
Facebook mad Whats App or any Social Network
its Help Us to make More Videos
Read More
WallStreet Forex Robot 2.0 Evolution
Buy VPN
ReliableIPTV IPTV Private Server + IKS 1 Year No Monlthy Fees
|E-Trade WIKI | |How do I get started investing online? | |All Press Releases | |TradingView |