In exchange, you collect a premium upfront. With call options, you're promising to sell a stock at a certain price, even if it rises much higher. While selling options can create consistent income ...

When a speculator buys to open a call option (known as a "long call"), it's a bet the stock will rise above that strike price prior to expiration. Conversely, when a trader sells to open a call ...

A bear call spread is an options strategy where you sell a call option at one strike price and buy another at a higher strike ...

The call owner can exercise the option, putting up cash to buy the stock at the strike price. Or the owner can simply sell the option at its fair market value to another buyer before it expires.

Call options: Call options give the owner the ability to purchase the underlying security (here the Bitcoin ETF) at a ...

Selling a covered call means writing a call option against shares of a stock that you own. This combination has the same risk profile as selling a naked put option, and so it exposes you to ...

To initiate a short straddle, you will sell (to open) one put option, and simultaneously sell (to open) one call option. Both options will be based on the same underlying stock, and will share the ...

Alibaba stock soared 29% following its AI advancements. Learn why it's a Hold now amid volatility spikes and earnings risks.

In its most basic terms, a covered call is an options strategy where investors sell a contract to buy shares they already own. For example, an investor who owns Microsoft Corp. (ticker ...

While Microsoft's current dividend yield is modest at 0.76%, you could generate additional income by selling one call option. By selling a covered call, you grant the buyer the right, but not the ...

XDTE uses 0-day options, aiming to generate income by selling slightly out-of-the-money calls daily. Read why I'm bullish on ...

However, selling call options caps the strategy’s upside because it won’t participate in S&P 500 gains beyond the option’s strike price. This detracts from performance in market rallies or ...