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Short Call

bearish bearish

Shorting a Call option is a simple but risky strategy & hence qualified as an advanced strategy. It is recommended when the price of the underlying asset is expected to fall & the certainty of a rise is ruled out

Legs:1Risk:Unlimited RiskProficiency :Advanced

Example:

InstrumentQtyPrice
SELL NIFTY 21-Jul-26 24150 CE6596.85

When To Execute?

When you expect a fall in the underlying asset price with more degree of conviction

Trade

Sell 1 lot OTM Call

Advantages

Profits from falling or range bound stocks

Income strategy & could be deployed against cash holdings

Disadvantages

Uncapped risk & a failure could result into huge losses

Short Call

Maximum Profit

Profit limited to the call premium

!

Maximum Loss

Selling options exposes you to uncapped risk where potential loss could be heavy incase the directional momentum is reversed