strategy in call_and_put_options

Jun 28th, 2015
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Writing a call 1. belief that stock will fall (bearish outlook); 2. maximum reward limited to premium received; 3. risk potentially unlimited (as stock price rises); 4. can be combined with another position to limit the risk.

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Long CallBuying a call1. belief that stock will rise (bullishoutlook);2. risk limited to premium paid;3. unlimited maximum reward.eShort CallWriting a call1. belief that stock will fall (bearishoutlook);2. maximum reward limited topremium received;3. risk potentially unlimited (assto

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