Donate SIGN UP

Can The Strike Price Be Less When Selling A Call?

Avatar Image
Orochish | 00:07 Sat 11th Sep 2021 | Business & Finance
1 Answers
So, when selling a call, can the strike price be less? I'm looking at selling a call for $2 on September 17. The current stock price is worth $6 though. Max profit would be $650. I just want to make sure I'm understanding correctly. I also haven't seen anyone (yet) sell a call for less then the market price. It always seems to be for more. Perhaps I misunderstood, and to sell for less, I need to do something else. I'm new to options trading but, I at least have an understanding. I'm not doing this blind. Thanks!
Gravatar

Answers

Only 1 answerrss feed

Avatar Image
Possibly worth a read (although I admit that I'm well out of my depth here): https://www.quora.com/Why-shouldnt-I-sell-a-call-option-with-strike-price-below-stock-price
00:26 Sat 11th Sep 2021
Possibly worth a read (although I admit that I'm well out of my depth here):
https://www.quora.com/Why-shouldnt-I-sell-a-call-option-with-strike-price-below-stock-price

Only 1 answerrss feed

Do you know the answer?

Can The Strike Price Be Less When Selling A Call?

Answer Question >>

Related Questions

Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.