7 ms·

How is selling call options not betting against a company?

• blitzar 11mo ago
  Dependant on strikes (assuming at the money, assuming naked short) you would still profit if it stayed the same, or went up a little in price. Selling options is also being short volatility, so the 'bet' is that less will happen than is expected and, in the case of selling calls, with a preference for happenings to be downward. A downward move could also see volatility go up significantly and increase the value of the options you are short, especially longer dated options.