Buying And Selling Call Options File

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

You buy a call if you expect the stock price to rise significantly. You pay a fee called a Premium . buying and selling call options

Most brokers require a brief application to "unlock" options trading levels. If the stock skyrockets, you are obligated to

Use a Limit Order to ensure you pay or receive the specific price you want. If the stock skyrockets

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