Series 6: 4.4.2. Short Call

Taken from our Series 6 Top-off Online Guide

4.4.2.  Short Call

Every option has both a buyer and a seller. The seller of the option is called the option writer. She believes LeanTree stock will not rise and is willing to bet on it. She writes the following call option:

Short LNTR Jul 25 call @ 3

In writing the call option, she receives the $3 premium that yo

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