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A short call will incur losses if the call closes above the breakeven zone at expiration, which is defined as the short call strike plus the credit received upfront for selling the call contract.
In a naked short, the trader sells a call option without already owning shares of the option's underlying stock. If the stock increases in price during the term of the options contract, the buyer ...
Should you short an in-the-money (ITM) put or go long on an at-the-money (ATM) call to capture the expected movement in the underlying? This week, we discuss the pros and cons of shorting an ITM ...
A short call spread obligates you to sell the stock at strike price A if the option is assigned but gives you the right to buy stock at strike price B. Fox Business. Personal Finance; ...
Breakeven on a short call spread can be found by adding the net credit to the sold call strike, or $60.47. So if XYZ finishes at or below $60.46, the trade is profitable on paper ...