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 ...