2024 How to sell call options - Jun 19, 2023 · Selling a call option is selling the choice to purchase shares of an underlying stock at a specified price if the following criteria are met: The stock price reaches or surpasses the strike price. The strike price is reached before the option contract expires. Call options are denoted as contracts. Each contract represents 100 shares of a ...

 
If you exercised your call, you would purchase 100 shares * your strike (excercise) price. (Because a call option is the right to purchase). If you want to sell the contract, all you do is go to the sell tab on Robbinhood and click on the same maturity and strike. Your payoff will be equal to the contract premium * 100.. How to sell call options

There are two different types of options: Call: The right to buy the underlying asset. Put: The right to sell the underlying asset. The options trading process goes as follows: An options seller ...The stock's option chain indicates that selling a $55 six-month call option will cost the buyer a $4 per share premium. You could sell that option against your shares, which you purchased at $50 ...Five9 is weighing options for a sale, more than two years after a buyout by Zoom Video Communications failed, Bloomberg News reported on Monday, citing people …Option Selling Strategy Explained. The buyer of a call option is granted the right without the duty to purchase the underlying stock at the price that is specified in the option contract as the “strike price.” Simply put, the strike price is the point in time when the option contract will be automatically converted into shares of the underlying security.A conference call enables you to organize a meeting with other people who are not at the office in a way you can communicate with each one and exchange ideas as if everyone was in the boardroom.Selling options can be a lucrative trading strategy over time as long as you follow some important rules that we have outlined for you.Investors sell covered calls by writing a call option and owning the underlying asset. If the asset price doesn’t reach the strike of the call, the investor makes money.Selling options can be a lucrative trading strategy over time as long as you follow some important rules that we have outlined for you. Selling a home can be a stressful and time-consuming process, but there are some tips and tricks that can help you get the job done quickly. Here are some of the fastest ways to sell your home.The four basic types of option positions are buying a call, selling a call, buying a put, and selling a put. A call is the right to buy a security at a given price. Therefore, a trader can buy a ...Traders buying these call options are betting that GameStop's stock price will surge about 28% from current levels to above $20 before December 8. The options will expire …Selling a call option requires you to deposit a margin. When you sell a call option your profit is limited to the extent of the premium you receive and your loss can potentially be unlimited. P&L = Premium – Max [0, (Spot Price – Strike Price)] Breakdown point = Strike Price + Premium Received.By selling the call option, he receives a premium upfront for the sale. From here, only two things can happen: the option can expire in-the-money or out-of-the-money. If the option expires in-the ...The premium is not refundable. The options seller can make a profit from the premium. In addition, if the buyer doesn’t exercise their right to trade the asset, when the contract expires the seller still holds the asset as well. However, option selling also carries some investment risk. If the option ends up “in the money” for the buyer ...Weekly options are a lot less expensive than shares of the stock and also less expensive than standard options. This is because the time duration is extremely limited with weekly options, and ...The two most common types of options are calls and puts: 1. Call options. Calls give the buyer the right, but not the obligation, to buy the underlying asset at the strike price specified in the option contract. Investors buy calls when they believe the price of the underlying asset will increase and sell calls if they believe it will decrease.Call options give the holder of the contract the right to purchase the underlying security, while put options give the holder the right to sell shares of the underlying security. Both can be used to let investors profit from movements in a stock’s price. However, there are very important differences in how they work.12 Jan 2023 ... So, when buying a call option, a trader has the right to buy the underlying stock or index. When selling a call option, a trader assumes the ...Selling options can be a lucrative trading strategy over time as long as you follow some important rules that we have outlined for you.Put versus call options. Options contracts are categorized into two basic types: put options and call options.A put option gives the holder the right to sell a stock at a specific price any time ...Option: An option is a financial derivative that represents a contract sold by one party (the option writer) to another party (the option holder). The contract offers the buyer the right, but not ...Traders buy a call option to purchase a contract at a fixed price. Call options are generally used if a contract's price is expected to move higher. A call option is a right to buy the contract at a fixed price, not an obligation. Call options can also be used as a stop-loss strategy.Jul 24, 2023 · The purchaser of a put option pays a premium to the writer (seller) for the right to sell the shares at an agreed-upon price in the event that the price heads lower. If the price hikes above the ... The best strategy was to sell covered calls with strikes 0.5 standard deviations OTM. This line is drawn in light blue, followed by 0.75, 1, 1.25, and 1.5 standard deviations. Note that the most ...5. Sell Your Options. In our example of selling covered calls, you own 1,000 shares of XYZ stock. Therefore, you decide to sell 10 options contracts – each contract gives the call holder the right to buy 100 shares each. You sell the 10 options for $200 per contract and generate $2,000 in cash.Nov 19, 2021 · You sell a covered call option with a strike price of $12, set to expire one month from now, for a premium of $1 per share ($100). A buyer pays you $100 for the right (but not the obligation) to ... The most basic options calculations for the Series 7 involve buying or selling call or put options. Although using the options chart may not be totally necessary for the more basic calculations, working with the chart now can help you get used to the tool so you’ll be ready when the Series 7 exam tests your sanity with more-complex …Buying a call option The simplest options trading strategy involves buying a call option when you expect the underlying market to increase in value. If it does what you expect and the option’s premium rises as a result, you’d be able to profit by selling your option before expiry. Or, if you hold your option until expiry and the underlying ...Puts and calls are the types of options contracts, and both types have a buyer and a seller. So while most financial markets have only two types of participants — buyers and sellers — the ...Mar 16, 2018 · Example: Sell a nine-month, $60 call on a $51.50 stock for $4, and your "called away" sales price would be $64, if exercised later. That leaves more than 24% further upside from the trade ... Dec 1, 2023 · A short straddle is an options strategy comprised of selling both a call option and a put option with the same strike price and expiration date. more. Fixed-Dollar Value Collar: Meaning, Pros and ... Making a call from your computer is easier than you might think. With the right software and hardware, you can make a call from your computer in just five easy steps. Whether you’re using a laptop, desktop, or tablet, these steps will help ...The holder of an American-style option can exercise their right to buy (in the case of a call) or to sell (in the case of a put) the underlying shares of stock at any time. The holder of a European-style option can only exercise their right at expiration. Both contract styles can be closed on the option's market at any time.You’ll sell the stock for $7.50, but you’ll have made gains in two ways. First, you’ll have earned gains from $6.85 to the strike price of $7.50 by selling your shares. That’s $0.65 per ...1 Assignment occurs when an option holder exercises their put or call and a delivery notice is delivered to the trader with the short option. With calls, assignment involves the short option party selling shares, and with puts, assignment means the short option party buying the shares. 2 A bullish strategy in which a put option is sold for a ...If you need cash, aren’t happy with your investment returns or want to diversify your investments, you may have to liquidate some of your stocks. Buying and selling stocks is extremely easy these days; you can trade stocks online or with Ca...Here’s a simple example: Assume Company XYZ’s stock is trading at a price of $50, and you sell three-month puts with a strike price of $40 for a premium of $5. Let’s say you sold 10 put ...Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a...Call Options is one of the two types of options, with the other one being the put option. A call option gives the buyer the right to acquire the security at a certain date and price in the future. The …According to me, it will be: If you think that the market will do well this month then you should consider 'BUY Call Option' or 'SELL Put Option'. If you think ...Making a call from your computer is easier than you might think. With the right software and hardware, you can make a call from your computer in just five easy steps. Whether you’re using a laptop, desktop, or tablet, these steps will help ...Selling a Call Option. First, it is essential to understand that there are two ways to sell a call option, by writing a new contract, or by selling a call option you …5. Sell Your Options. In our example of selling covered calls, you own 1,000 shares of XYZ stock. Therefore, you decide to sell 10 options contracts – each contract gives the call holder the right to buy 100 shares each. You sell the 10 options for $200 per contract and generate $2,000 in cash.King Charles and Prince William are preparing to hold high-level talks as they deal with the fallout of two royals being identified in the race scandal which has …Jun 30, 2022 · Covered call writers sell options on stocks they own. The option is said to be "covered" by the stock. If the buyer of the option exercises the contract, the seller would sell the stock they hold. 23 Nov 2020 ... When you decide to sell a call option, you must sell the designated shares at the established price to the buyer if they exercise the option ...NASHVILLE, Tenn. (AP) — Daryl Hall has sued his longtime music partner John Oates, arguing that his plan to sell off his share of a joint venture would violate the …Two Ways to Sell Options Publisher Nasdaq Published Jun 10, 2019 11:19AM EDT When you sell (or "write") a Call - you are selling a buyer the right to …A naked call option occurs when you sell a call option without owning the underlying asset. It's a perilous decision. If the buyer exercises the option, you have to buy the asset at the market price to satisfy the order. If the price is higher than the strike price, you will lose the difference minus the fee you paid.A covered call is a bullish strategy that involves owning 100 shares of the underlying stock or ETF and simultaneously selling a call option (also known as a short call). At Robinhood, you must already own 100 shares of the underlying stock or ETF to sell a call. In options trading, short describes Covered call writing involves selling upside call options on a long stock position already held. The covered call strategy can boost returns during flat or down markets, but limits upside ...The covered call strategy involves selling a call option to collect a premium and taking on the obligation to sell your 100 shares if it exceeds the strike price. The covered call is also a great ...May 8, 2023 · A buy-write allows you to simultaneously buy the underlying stock and sell (write) a covered call. Keep in mind: You may be subject to two commissions: one for the buy on the stock and one for the write of the call. Even basic options strategies like covered calls require education, research, and practice. As with most types of investing, selling call options comes with both upside and downside. Pros include earning additional (premium) income on stock you already have or even stock you don't own. This action is repeatable, meaning you could sell a one month covered call 12 times in a year. Finally the premium … See moreYou sell a covered call option with a strike price of $12, set to expire one month from now, for a premium of $1 per share ($100). A buyer pays you $100 for the right (but not the obligation) to ...May 6, 2022 · A call option is considered a derivative security because its value is derived from the value of an underlying asset (e.g., 100 shares of a particular stock). Investing in a call is like betting ... The risk of buying the call option, as opposed to simply buying the stock, is that you could lose the entire premium you paid for the option. One way to hedge this risk is to sell another call option with a higher strike price and same expiration, turning the trade into a bull call spread.8. Long Call Butterfly Spread. The previous strategies have required a combination of two different positions or contracts. In a long butterfly spread using call options, an investor will combine ...Buying a call option gives you the right, but not the obligation, to buy an underlying market at a set price – called the ‘strike’ – on or before a set date. The more the market value increases, the more profit you can make. You can also sell call options. As the seller of a call option, you will have the obligation to sell the market ...Share options are financial instruments that provide the right (but not the obligation) to buy or sell a certain number of shares at a predetermined price on or before a future date. Share options ...But you can also sell options. On-screen text: Call option sellers are obligated to sell the underlying at a certain price and put option sellers are obligated to buy the underlying at a certain price. Narrator: So, selling a call is typically bearish, while selling a put is typically bullish. Each option contract usually represents 100 shares.First, let's nail down a definition. A covered call is a neutral to bullish strategy where a trader typically sells one out-of-the-money 1 (OTM) or at-the-money 2 (ATM) call option for every 100 shares of stock owned, collects the premium, and then waits to see if the call is exercised or expires. Some traders will, at some point before …There are two main types of options: call options, which give the holder the right to buy an asset, and put options, which give the holder the right to sell an asset. Call options are considered bullish, as they profit from an increase in the underlying asset price. In contrast, put options are considered bearish, as they profit from a decrease ...Naked Call: A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security . This stands in contrast to a covered ...There are two types of option contracts: a "Call" and a "Put." Calls: If you buy a Call, you are buying a contract that gives you the right to buy 100 shares (usually) of a specific stock (the "underlying" security) from the option writer at a specific and fixed price (the "exercise" or "strike" price) at any time up to the expiration date (as determined by the expiration month of the option ...12 Jan 2023 ... So, when buying a call option, a trader has the right to buy the underlying stock or index. When selling a call option, a trader assumes the ...Selling call options. Once again you collect the premium, but you may be obligated to sell the underlying at the strike price if it trades above the strike price at or before expiration. If you own shares of a stock or ETF, selling call options could be part of a viable income-generating strategy known as a covered call.Selling options can be a lucrative trading strategy over time as long as you follow some important rules that we have outlined for you.There are two broad categories of options: "call options" and "put options". A call option gives the owner the right to buy a stock at a specific price. But the owner of the call is not obligated to buy the stock. That’s an important point to remember. A put option gives the owner the right—but, again, not the obligation—to sell a stock ... May 6, 2022 · A call option is considered a derivative security because its value is derived from the value of an underlying asset (e.g., 100 shares of a particular stock). Investing in a call is like betting ... Here’s a simple example: Assume Company XYZ’s stock is trading at a price of $50, and you sell three-month puts with a strike price of $40 for a premium of $5. Let’s say you sold 10 put ...1. You own shares of a stock (or ETF) that you would be willing to sell. 2. You determine the price at which you’d be willing to sell your stock. 3. You sell a call option with a strike …There are two broad categories of options: "call options" and "put options". A call option gives the owner the right to buy a stock at a specific price. But the owner of the call is not obligated to buy the stock. That’s an important point to remember. A put option gives the owner the right—but, again, not the obligation—to sell a stock ...Options Premium The option premium is the amount which the holder pays for the option It is also the amount the option writer receives. Example A September 12 1660 Call Option with a premium of 18.0 BUY 1 OKLIBUY 1 OKLI** SEP12 1660 C ll @ 18 0SEP12 1660 Call @ 18.0 The holderwillpayholder will pay 18018.0 X RM50 = RM900 tothesellerfortheto …Synthetic Call: A synthetic call is an investment strategy that mimics the payoff of a call option . A synthetic call is created by purchasing the underlying asset, selling a bond and purchasing a ...Here’s a simple example: Assume Company XYZ’s stock is trading at a price of $50, and you sell three-month puts with a strike price of $40 for a premium of $5. Let’s say you sold 10 put ...Jul 24, 2023 · Buyer and seller dynamics: The buyer of a call option pays a premium to acquire the right to purchase the underlying asset in the future. The seller, also known as the writer, receives the premium ... One way to do this is by selling corn “call” options. As the option seller, he would collect a premium upfront from the option buyer. He could potentially ...1 Assignment occurs when an option holder exercises their put or call and a delivery notice is delivered to the trader with the short option. With calls, assignment involves the short option party selling shares, and with puts, assignment means the short option party buying the shares. 2 A bullish strategy in which a put option is sold for a ...Selling a call is actually like buying a put, as you can see. However, the difference is you have a cap or max profit. You can’t make any more than that. If you sell a pair of shoes for $75, that is pretty much all you can get. You can get more in the future. You’re just making $75.In today’s digital age, selling things online has become easier than ever. With the right knowledge and tools, you can start your own online business without spending a dime. When it comes to selling things online, choosing the right platfo...Naked Call: A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security . This stands in contrast to a covered ...A call option is a contract that gives the owner the option, but not the requirement, to buy a specific underlying stock at a predetermined price (known as the “strike price”) within a...Buying a call option The simplest options trading strategy involves buying a call option when you expect the underlying market to increase in value. If it does what you expect and the option’s premium rises as a result, you’d be able to profit by selling your option before expiry. Or, if you hold your option until expiry and the underlying ...The two most common types of options are calls and puts: 1. Call options. Calls give the buyer the right, but not the obligation, to buy the underlying asset at the strike price specified in the option contract. Investors buy calls when they believe the price of the underlying asset will increase and sell calls if they believe it will decrease.Option Selling Strategy Explained. The buyer of a call option is granted the right without the duty to purchase the underlying stock at the price that is specified in the option contract as the “strike price.” Simply put, the strike price is the point in time when the option contract will be automatically converted into shares of the underlying security.There are two broad categories of options: "call options" and "put options". A call option gives the owner the right to buy a stock at a specific price. But the owner of the call is not obligated to buy the stock. That’s an important point to remember. A put option gives the owner the right—but, again, not the obligation—to sell a stock ...Sep 10, 2023 · Call Options . When call options are exercised, the premium paid for the option is included in the cost basis of the stock purchase. For example, a trader buys a call option for Company ABC with a ... The covered call strategy involves selling a call option to collect a premium and taking on the obligation to sell your 100 shares if it exceeds the strike price. The covered call is also a great ...How to sell call options

Dec 28, 2017 · Many people don’t understand that you can actually sell option contracts without having the stock, or without owning the other option side of the trade.Selli... . How to sell call options

how to sell call options

Two Ways to Sell Options Publisher Nasdaq Published Jun 10, 2019 11:19AM EDT When you sell (or "write") a Call - you are selling a buyer the right to …You sell a covered call option with a strike price of $12, set to expire one month from now, for a premium of $1 per share ($100). A buyer pays you $100 for the right (but not the obligation) to ...Learn the ins and outs of selling options, a strategy to generate income by selling call or put options on a security that is not owned by the seller. Find out the …The stock's option chain indicates that selling a $55 six-month call option will cost the buyer a $4 per share premium. You could sell that option against your shares, which you purchased at $50 ...An options contract is the right to buy or sell a security at a specific price by a specific date. A call option gives the investor the right to buy; a put option is for the right to sell. Options ...11 Mar 2021 ... The person who sells you the call option is obligated to sell you stock at that price, if you choose to exercise your rights under the contract.Covered Call: A covered call is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased ...Naked Call: A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security . This stands in contrast to a covered ...Over the last few chapters, we have looked at two basic option type’s, i.e. the ‘Call Option’ and the ‘Put Option’. Further, we looked at four different variants originating from these 2 options – Buying a Call Option; Selling a Call Option; Buying a Put Option; Selling a Put Option1. You own shares of a stock (or ETF) that you would be willing to sell. 2. You determine the price at which you’d be willing to sell your stock. 3. You sell a call option with a strike …A call option is a contract between a buyer and a seller that gives the option buyer the right (but not the obligation) to buy an underlying asset at the strike price on or before the expiration date. The buyer pays a premium to the seller in exchange for this right. They can either sell the option before it expires, exercise the option to ...Image source: The Motley Fool. A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an ...Call and Put Options trade positions · A Put Option is the right, not the obligation, to sell an underlying asset at an agreed price on or before a particular ...Learn the basics of selling call options, a contract between a seller and a buyer of a right to purchase an underlying security at a set price before a certain date. Find out the types, advantages, and disadvantages of different types of call options, such as covered call, naked call, and sell to close. Buying a call option The simplest options trading strategy involves buying a call option when you expect the underlying market to increase in value. If it does what you expect and the option’s premium rises as a result, you’d be able to profit by selling your option before expiry. Or, if you hold your option until expiry and the underlying ...Apr 10, 2015 · Selling a call option requires you to deposit a margin. When you sell a call option your profit is limited to the extent of the premium you receive and your loss can potentially be unlimited. P&L = Premium – Max [0, (Spot Price – Strike Price)] Breakdown point = Strike Price + Premium Received. Traders buy a call option to purchase a contract at a fixed price. Call options are generally used if a contract's price is expected to move higher. A call option is a right to buy the contract at a fixed price, not an obligation. Call options can also be used as a stop-loss strategy.The four basic types of option positions are buying a call, selling a call, buying a put, and selling a put. A call is the right to buy a security at a given price. Therefore, a trader can buy a ...If you exercised your call, you would purchase 100 shares * your strike (excercise) price. (Because a call option is the right to purchase). If you want to sell the contract, all you do is go to the sell tab on Robbinhood and click on the same maturity and strike. Your payoff will be equal to the contract premium * 100.Covered Call: A covered call is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased ...About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket Press Copyright ... The StandBy feature is arguably one of the biggest new iOS 17 features to the iPhone, turning your phone into a smart display when it's charging horizontally …Press "Confirm and Send," review your trade, and send the order. 5. Manage your position. If you bought an option, depending on what the price of the underlying asset is, you may decide to sell the option before it …Sep 13, 2021 · This is how to sell call options on Robinhood for beginners. Most Robinhood users do not know how to sell covered calls on Robinhood. In this options trading... When you are bullish on a stock you can either buy the stock in spot, buy its futures, or buy a call option. When you are bearish on a stock you can either sell the …Select from the ranges below to give us your best estimate: FINAL STEP For your free quote only, Credit Saint will never sell your information By clicking the above button, you consent to receive calls and text messages using automated tech...An options contract is the right to buy or sell a security at a specific price by a specific date. A call option gives the investor the right to buy; a put option is for the right to sell. Options ...Apr 27, 2023 · Some investors use call options to achieve better selling prices on their stocks. They can sell calls on a stock they’d like to divest that is too cheap at the current price. 1. You own shares of a stock (or ETF) that you would be willing to sell. 2. You determine the price at which you’d be willing to sell your stock. 3. You sell a call option with a strike …Jul 29, 2022 · Investors sell covered calls by writing a call option and owning the underlying asset. If the asset price doesn’t reach the strike of the call, the investor makes money. Writing an option refers to the opening an option position with the sale of a contract or contracts to an option buyer. When writing a call option, the seller agrees to deliver the specified ...A call option is a contract that gives the owner the option, but not the requirement, to buy a specific underlying stock at a predetermined price (known as the “strike price”) within a...So an option price of $0.38 would involve an outlay of $0.38 x 100 = $38 for one contract. An option price of $2.26 requires an expenditure of $226. For a call option, the break-even price equals ...Key Takeaways A call is an option contract giving the owner the right, but not the obligation, to buy an underlying security at a specific price within a specified time. The specified price is...Call options are sold in the following two ways: 1. Covered Call Option. A call option is covered if the seller of the call option actually owns the underlying stock. Selling the call options on these underlying stocks results in additional income, and will offset any expected declines in the stock price. Are you looking to sell your car quickly and easily? Craigslist is a great option for selling your car, but it can be tricky to navigate. This guide will give you all the tips and tricks you need to successfully sell your car on Craigslist.Aug 28, 2023 · Like selling a put, selling a call provides a premium in exchange for an obligation (to sell 100 shares of stock at the strike price per call option). Now, suppose a trader wants to sell a call option on a stock that is trading at $59.75. Imagine they sold a 60-strike call at $3. A conference call enables you to organize a meeting with other people who are not at the office in a way you can communicate with each one and exchange ideas as if everyone was in the boardroom.Options positions should be looked at from both the standpoint of the BUYER (or taker) and the SELLER (or writer). Bought Call Options give the BUYER the right (but not the obligation) to buy a specific number of securities, for a specific price, on or before a set date.There are two main types of options: call options, which give the holder the right to buy an asset, and put options, which give the holder the right to sell an asset. Call options are …Selling a Call Option. First, it is essential to understand that there are two ways to sell a call option, by writing a new contract, or by selling a call option you already own. Selling A Call Option To Open A Trade. Through your broker, you become the seller of a call option and collect the premium that the option is selling for.November 29, 2023 at 1:34 PM PST. Listen. 1:18. Investors went from buying GameStop Corp. call options to selling them Wednesday as the meme stock crowd circled back …Put options give the buyer the right to sell the underlying asset at a specific price within a certain time frame. Option prices are affected by factors such as strike price, time to expiration, interest rates, and volatility. For every dollar the share price rises, you make $100. For every dollar it falls, you lose $100.Whether you have a closet full of items you don’t wear or you just need to make some extra cash fast, selling your used clothes is a great way to do it, especially if you like to wear brand names.For a look at more advanced techniques, check out our options trading strategies guide. 3. Predict the option strike price. When buying an option, it remains valuable only if the stock price ...Let us now see how you can sell the put option in Zerodha. Log in to your account using your Login credentials. Similar to the call option, search the scrip. Now on the right-hand side of the option chain, you will see the put option. Click on the desired strike price and then click on sell.To sell wholesale goods in New York State, it is necessary to obtain a resale certificate by filling out tax form ST120 or by calling the Department of Taxation and Finance at 518-485-2289. The resale form is available for download by visit...Sep 29, 2023 · Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a... Sep 13, 2021 · This is how to sell call options on Robinhood for beginners. Most Robinhood users do not know how to sell covered calls on Robinhood. In this options trading... Nov 9, 2023 · Selling call options. Once again you collect the premium, but you may be obligated to sell the underlying at the strike price if it trades above the strike price at or before expiration. If you own shares of a stock or ETF, selling call options could be part of a viable income-generating strategy known as a covered call. . Best pet insurance in oregon