Cow Moo-neyOPJunafu:
If you buy a call option, you would want the price to go up. But if you sell a call option, you would want the price to stay flat or go down
SeraphicallJunafu:
He’s the seller of the call option. Covered calls in the right term. Basically, he collected premiums upfront. The worst the stock performs, the worst the call option, the more he earned from the margins of the premium. Best scenario (worst for the buyer) is having the option expire worthless, and he will have the full premium to himself. And, best thing is he doesn’t need to bear the risk of time decay. @Cow Moo-ney please correct me if I had mistaken.
Junafu : I thought call is for the price to go up?
Cow Moo-neyOP Junafu: If you buy a call option, you would want the price to go up. But if you sell a call option, you would want the price to stay flat or go down
Seraphicall Junafu: He’s the seller of the call option. Covered calls in the right term. Basically, he collected premiums upfront. The worst the stock performs, the worst the call option, the more he earned from the margins of the premium. Best scenario (worst for the buyer) is having the option expire worthless, and he will have the full premium to himself. And, best thing is he doesn’t need to bear the risk of time decay. @Cow Moo-ney please correct me if I had mistaken.
Cow Moo-neyOP Seraphicall: Correct. You’ve explained it quite thoroughly! Haha. Thanks
Seraphicall Cow Moo-neyOP: