Buying And Selling Call Options Guide

Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend.

If the stock skyrockets, you are obligated to sell the shares at the strike price, missing out on all gains above that level. buying and selling call options

Use a Limit Order to ensure you pay or receive the specific price you want. Options lose value every day they get closer to expiration

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Theoretically unlimited. As the stock goes up, the value of your option increases.

You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer.