{"id":6527,"date":"2019-03-10T07:52:59","date_gmt":"2019-03-10T07:52:59","guid":{"rendered":"https:\/\/www.wasteyourtime.co\/?p=6527"},"modified":"2021-10-12T12:17:42","modified_gmt":"2021-10-12T11:17:42","slug":"short-call-option-strategy","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/03\/short-call-option-strategy\/","title":{"rendered":"Short Call Option Strategy Explained"},"content":{"rendered":"

<\/h1>\n

3 min read<\/span><\/i><\/p>\n

\"Short<\/p>\n

What is the short call option? The simplest way to classify \u201cshort\u201d trade is any trade short of that from which you will profit if it falls in relative value.\u00a0<\/span><\/p>\n

A short call option is one of the trading strategies in which the trader is speculating the price of the asset on which option is placed is going to drop.<\/span><\/p>\n

In short, a call option is the right to buy the underlying futures contract at a certain price.<\/span><\/p>\n

That means, also, that the writer does not own an equivalent position in the underlying security represented by their options contracts<\/a>. <\/span><\/p>\n

Would you like to make a healthy return from a stock that drops in value in a short frame time?<\/span><\/p>\n

If your answer is YES, you should think about the short call strategy.<\/span><\/p>\n

\n
\n

Table of Contents<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n