• A call option gives the option buyer the right to purchase the underlying shares at the strike price before the contract expires.
  • When an investor sells a call option, the trade is called a short call.
  • A short call requires the seller to deliver the underlying shares to the buyer if the option has been exercised.
  • A short call is a bearish trading strategy, reflecting a bet that the security underlying the option will fall in price.
  • The goal of a trader selling a call is to make money from the premium and see the worthless option expire.