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Yet selling calls involves another risk: if prices fall, they collect the premium; if they rise, the buyer gets most of the benefit.Is this not merely opportunity loss?
Additionally, selling calls provides an effective exit strategy on the long stock position.
His goal: Add 1.5% per month in income to his portfolio returns by selling calls and puts.
Pessimists expressed doubts for a near-term rebound in PCLN's share price by selling calls in the May contract.
The ETF appeared on our "most active by option volume" market scanner after one trader was seen taking profits by selling calls.
By selling calls at the upper 40 strike price, gains are capped at a maximum of $5.55 if shares can rally to $40 by expiration.
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Most small investors selling call options sell covered calls.
One investor harvested substantial profits today by selling call options purchased in December.
Bearish options players flooded the July contract with pessimism, selling call options and buying puts.
But they do have a product they are selling called Windows Live OneCare.
Ansbacher got hooked on selling call options on individual stocks during the early 1970s.
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