{"id":9257,"date":"2023-04-20T14:01:29","date_gmt":"2023-04-20T14:01:29","guid":{"rendered":"https:\/\/www.wallstreetzen.com\/blog\/?p=9257"},"modified":"2025-05-15T15:32:30","modified_gmt":"2025-05-15T15:32:30","slug":"what-is-sell-call-option","status":"publish","type":"post","link":"https:\/\/www.wallstreetzen.com\/blog\/what-is-sell-call-option\/","title":{"rendered":"What is a Sell Call Option? Meaning, How To, and What Happens When Selling Calls?"},"content":{"rendered":"\n

Trying to make sense of selling a call in options trading? Your fevered \u201cwhat is sell call option\u201d Googling can now come to an end. Here\u2019s what it means\u2026<\/p>\n\n\n\n

Selling a call simply refers to selling the right, but not the obligation, to purchase shares of an underlying stock at a set price by a specified expiration date. <\/p>\n\n\n\n

Still not sure what that means or why it matters? Keep reading \u2014 I promise it\u2019s not as complicated as it seems. <\/p>\n\n\n\n

In this article, I\u2019ll guide you beyond basics like what does selling a call mean so you can gain a better understanding of this basic options trading strategy.<\/p>\n\n\n\n

You\u2019ll learn the mechanics of selling a call, precisely what happens when you sell a call, and why selling calls is a great way to add some income to your portfolio. <\/p>\n\n\n

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150.4% average annualized returns…<\/strong><\/em><\/p>\n

Prefer to have someone else do the heavy lifting on your options trading journey? Stock Market Guides<\/a> offers more than just alerts \u2013 they offer real data on how each trade setup has historically performed.<\/p>\n

You’ll receive up to 40 alerts per month via email or text, showing the exact option to buy, with expiration and strike price details.<\/strong><\/p>\n

For just $69 a month, you get pre-market and regular market-hour picks, allowing you to tailor the service to your trading schedule. With the ability to customize based on price or holding time, this service gives you flexibility, transparency, and no upsells \u2013 just clear, actionable trade insights.<\/p>\n

* Average annualized return in backtests of all the option picks featured in this service.\u00a0<\/em><\/p>\n

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Check out Stock Market Guides<\/a><\/div>\n<\/div>\n\n\n
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Buying vs Selling a Call Option<\/strong><\/h2>\n\n\n\n

Before we get to what does it mean to sell a call<\/em>, let\u2019s go over a few basics. <\/p>\n\n\n\n

First, what is a call option?  <\/p>\n\n\n\n

A call option is the right but not the obligation to purchase shares at a predetermined price by a specified date, known as the expiration date<\/strong>. <\/p>\n\n\n\n

Like when stocks trade, there is a buyer and a seller for call option contracts.<\/p>\n\n\n\n