How to set up a Short Call on moomoo
Step 1: Tap on an Individual Stock > Options > Single Option > Select the specific Expiration Date and Strike Price > Trade
Step 2: On the Trade page, set Sell/Buy, Trading Price, Contract Quantity, and Order Type, then click on the icon with two arrows to view the margin requirements, and click Sell.
Step 3: Successfully purchased option contracts can be found in Positions. You can trade or roll the contract.
Step 4: After the sale, the option premium will be credited to the account immediately. You can go to Accounts > More > Funds Details to check the cash flow into the account.
Notes:
1. Please note that short selling options is only appropriate for experienced option traders because of the extreme risk associated with this trade as potential losses can be unlimited.
2. Please note that the seller of the call option faces the risk of being assigned, which occurs when the holder of an option exercises their right to buy (in the case of a call option) or sell (in the case of a put option) the underlying asset. Therefore, it is important to ensure that your account has sufficient underlying stocks or margin/cash available for being assigned.
3. Even if you take no other actions after selling the option, the margin requirement may increase due to intensified market volatility during the day or movement in the underlying asset.. Therefore, it is advisable to always maintain sufficient margin/cash in your account.
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This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more