The Short Call is a strategy that involves selling a Call Option and receiving a premium for it.

The investor is hoping that the stock price will not rise, so that the option expires worthless, to keep the premium.

This strategy is profitable at expiry in case the stock price does not exceed the break-even point (which is equal to the Strike + Premium received).

It is important to note that this strategy has a limited profit, but unlimited potential loss, which makes it quite risky.

Buy / Sell Quantity Call / Put / Stock Strike Days to Expiry Volatility, % Premium Debit / Credit  

Short Call P/L Chart