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short call option


Definition
A stock option strategy in which an investor sells a call on shares that are either currently owned (covered call) or not yet owned (naked call). The two types of short calls carry different risks. For a naked call, the breakeven point is the premium received plus the strike price. For a covered call, the breakeven point is the strike price minus the premium.

Related Terms

synthetic stock -  More

uncovered call -  More

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costless collar

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