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.

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 ...

If you're relying on your investment portfolio for regular income – whether you're retired or pursuing FIRE (Financial ...

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 ...

The funny thing about that big yield is that it tends to attract naysayers who will tell you that these funds are just ...

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 ...

Naked calls work by selling call options on a stock without actually owning the underlying shares. The option seller or writer hopes that the stock price will decrease or stay below the option's ...

If the market value moves in your favour, the more profits you make. You can also sell call options if you think the market will fall. Buying a put option gives you the right, but not the ...