Buying And Selling Call Options < Recommended >
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You buy a call if you expect the stock price to rise significantly. You pay a fee called a Premium . buying and selling call options
Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend. AI responses may include mistakes
You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer. You pay a fee called a Premium
Theoretically unlimited. As the stock goes up, the value of your option increases.
You don't have to wait for expiration. You can "sell to close" a bought call or "buy to close" a sold call at any time to lock in profits or cut losses.