Sell Call
#pixarts.trade , #safebull
Market View – Mildly Bearish The Trade – Sell a Call Option Premium – Receive Margin – Required When To Do Pros Cons Time and Volatility Max Loss : Very high Max Profit : Premium
Market View – Mildly Bearish
The Trade – Sell a Call Option
Premium – Receive
Margin – Required
When To Do
- If the stock will not go up – that is i) stays still, ii) small or big down move or iii) A very small up move
- Avoid selling when IV and premium is low
Pros
- Make money even if you are slightly wrong, that is the stock moves up a bit
Cons
- Very high loss if stock moves up a lot
Time and Volatility
- Gains time value every day
- Loss if IV goes up
Max Loss : Very high
Max Profit : Premium