Use a Limit Order to ensure you pay or receive the specific price you want.
The stock price is higher than the strike price. buying and selling call options
Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right. Use a Limit Order to ensure you pay
Theoretically unlimited. As the stock goes up, the value of your option increases. Theoretically unlimited
High IV makes options more expensive. Buying when IV is low and selling when IV is high is a common strategy. 5. Steps to Trade
You don't have to wait for expiration. You can "sell to close" a bought call or "buy to close" a sold call at any time to lock in profits or cut losses.
Note: Only sell "Covered Calls" (where you already own the shares) to limit risk. Selling "Naked Calls" has infinite risk and is not recommended for beginners. Limited to the premium received. 4. Key Terms to Know