Buying And Selling Call Options May 2026

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

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. 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. If the stock skyrockets, you are obligated to