Short Call can also be called as Sell Call. Both are same. In Options World you use the term
- Long for Buy or Bullish
- Short for Sell or Bearish.
Remember the first strategy was called Long Call means Buy Call. This second strategy is just opposite of the first one with some unique features of its own. You need to understand these two strategies completely as rest of them will use combination of these two. So if you have not watched the first one then do so before starting with this one. These two techniques will form the base of more advanced technique which we will discuss later in this series of Option trading. So it is better to grasp these two concepts first.
If you are new to Options trading then I would suggest you to watch or read the Getting Started tutorial on Options . That will help you understand these two strategies as well. It is important to watch the video as it explains the terms like
- Margin requirement for Short Call
- Profit and Risk of the technique
- When to use the technique
- When not to use the technique
- Nifty example for the technique
English Video
Hindi Video
Conclusion
I have serially named the strategies with numbers so that you are aware of the order in which these videos should be watched. The Getting started is the basic video which people should watch first. Then you should watch in order mentioned. 1st and 2nd Strategies are most important ones and should be completely understood before moving before.
It is best to explore all of them first and then pick the ones which suits your trading style.In case of any questions you can post your queries as well. Note Long Call means you are bullish on the instrument that is index or stock whereas short call means you are bearish or feel that instrument will not rise to that level. This is most important difference between both the techniques which people often do not understand. So if you feel that the underlying instrument will not rise to a certain level that it is bearish or not bullish enough then you should go with Short call option trading technique.
Whatever is mentioned above is most important concept for Shorting or selling. Buying is most common and people prefer that but understanding concept of selling requires some getting used to. So it is better to understand both the concepts before proceeding further with advanced concepts.