Options Strategies
Short Call
Strategies Short Call
Component Sell call
Potential Profit
  • When the stock price/index level is below the break-even point
  • Limited to the premium received
Maximum Loss Unlimited, equals to stock price/index level minus break-even point
Time Value Impact Positive
Break-even Strike price/level plus premium received
  Net Position +1 Sep 200 Call

Component Sell ABC Sep $200 Call
Net Premium Receive $25
Break-even $200+$25=$225
Profit when Stock price is below $225
Potential Profit $25
Potential Loss Stock price - $225
Time Value Impact Positive