Buying And Selling Call Options -

If the stock skyrockets, you are obligated to sell the shares at the strike price, missing out on all gains above that level.

Theoretically unlimited. As the stock goes up, the value of your option increases. buying and selling call options

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 If the stock skyrockets, you are obligated to

Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right. If the stock skyrockets