Buying And Selling — Call Options

The stock price is lower than the strike price.

The stock price rises above your strike price plus the premium you paid (the Breakeven ). buying and selling call options

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 price is lower than the strike price

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

You buy a call if you expect the stock price to rise significantly. You pay a fee called a Premium .

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