Buying And Selling Call Options » (COMPLETE)

You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer.

The stock stays below the strike price. You keep the entire premium as profit. buying and selling call options

Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend. You sell (or "write") a call if you

Theoretically unlimited. As the stock goes up, the value of your option increases. time is your enemy

If the stock skyrockets, you are obligated to sell the shares at the strike price, missing out on all gains above that level.

Use a Limit Order to ensure you pay or receive the specific price you want.