Writing Call Options
Writing calls:
- Writing covered calls - maximum gain is the strike price plus the premium less the cost of the stock
.
The maximum loss is the cost of the stock less the premium.
The break-even point is the cost of the stock less the premium.
-Writing uncovered calls (Writing naked calls is the riskiest option strategy) - maximum gain is the premium.
Your maximum loss is unlimited.
The break-even point is the strike plus the premium.
