What is a 'Short Call'?

A short call is a strategy involving a call option, giving a trader the right, but not the obligation, to sell a security. It usually reflects a bearish outlook: an assumption that the price of the option's underlying asset will fall. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Short Call A short call option position in which the writer does not own an equivalent position in the underlying security represented by their option contracts. Making a short call is an options trading strategy in which the trader is betting that the price of the asset on which they are placing the option is going to drop. Read More » Related to "Short Call" Options vs. Futures: What's the Difference? Options and futures are both ways that investors try to make money or hedge their investments. However, the markets for these financial products operate very differently. Read More » Long Position vs. Short Position: What's the Difference? Long positions in a stock portfolio refer to stocks that have been bought and are owned, whereas short positions are those that are owed, but not owned. Read More » When Is a Call Option in the Money? Call options have intrinsic values, and a call option is in the money when the underlying stock price is above the strike price. Read More » Related Definitions Call Option A call option is an agreement that gives the option buyer the right to buy the underlying asset at a specified price within a specific time period. Read More » Naked Shorting Naked shorting refers to the practice of selling shorts associated with shares that investors do not already possess. Read More » Covered Call A covered call is a popular options strategy that can generate income, in the form of premiums, for an investor's account. Read More » Put Option A put option gives the owner the right to sell a specified amount of an underlying security at a specified price before the option expires. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy