However, some options strategies such as the covered call use a short call in a less risky way, by hedging the position with another security. When it’s used: A trader would generally go short ...

However, you'll also have to shell out a margin requirement to your broker to enter the position. Due to the high risk involved in a short call (as described below), you'll be required to deposit ...

As the name indicates, the synthetic short spread replicates the risk/reward dynamic of a short stock position. By combining a long put and a short call at the same strike, the position offers ...

Investors can sell to open out-of-the-money (OTM) or in-the-money (ITM) call(s) when establishing a short call position. The ideal scenario when selling OTM uncovered calls is when the underlying does ...

“Going short” or being in a “short call position” indicates that you are the seller of the call, so someone else has the right to call away your shares at the strike price until the option ...

By not having a short call position during the overnight, they lower the frequency that the strategy experiences losses. A second advantage unlocked by the strategy is the ability to have access ...