By selling a call option, the seller sells the right to the buyer to purchase the unit of stock from him/her at the set strike price, when the market value of the stock is less than the strike price at or before expiration. The seller sells the option with the assumption that the stock's price will move up or stay the same. In these cases, the seller will profit from the premium he/she has collected.
The probability of success with options is determined by the movement of the stock. For buying calls, if the stock's price...
Eighteen-year old trader, future connoisseur of options.
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