Glossary › short call

Trading glossary · advanced

short call

Selling a price ticket to someone else. You keep the money they pay, but you can lose a lot if the price shoots up.

The fuller meaning

Selling a call option. The seller keeps the premium but must deliver at the strike if exercised, so losses above the strike plus premium are unlimited in theory as price rises. Selling options for 'steady income' without a plan is a classic mistake.

short call.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger