When selling options, the max profit on the strategy is the initial credit received. A short call will incur losses if the call closes above the breakeven zone at expiration, which is defined as the ...

When you buy to open call options ... That's a profit of $1,000, or just 20% of your initial investment. Alternately, rather than selling to close the option, you could exercise your option ...

Should this happen, you can either buy the underlying shares, meaning you will be able to purchase them for less than their current market price, or sell the call option at a profit. Another ...