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 ...

Buying long-dated in-the-money (ITM) calls along with this short-put play is a way to gain upside if MCD turns around over the next year. For example, look at the Jan. 16, 2026, call option ...

Dividend risk elevates when a short call is ITM, and the corresponding put is worth less than the upcoming dividend payment. The only way to eliminate any dividend risk potential is by closing any ...