Short Call — Selling a Call Option
You're confident price will NOT rise above a certain level, so you sell others a "reservation" to buy — getting paid upfront. But if price does fly up, the loss is unlimited, so this is for experienced traders.
How the Short Call works
You collect a premium up front; if price stays below the strike you keep it. But on a strong rally the loss grows without limit, so a naked call needs strict risk management (or cover it with the asset → Covered Call).
Placing the strike at GEX levels
Set the strike at the Call Wall (strong resistance) where price rarely breaks above; premium is richer in high IV and the ideal regime is positive GEX. Mind the unlimited risk.
The Call Wall is computed live in the GEX Terminal — pick the strike in the Position Builder.
When to open, the Greeks and managing the position
It suits stagnant markets under powerful historical resistance, when the asset lacks drivers for an explosive rally. Max profit = premium, breakeven = strike + premium. Max loss is theoretically unlimited, so the position demands strict risk management.
Greeks: positive theta in the seller's favour. Management: given the catastrophic risk profile, stop-losses or regular dynamic delta-hedging with futures are mandatory; a Covered Call or Bear Call Spread is often safer.
FAQ
On a rally the loss is unlimited while profit is capped at the premium. A Covered Call or Bear Call Spread is often safer.
The strike plus the premium received.
Build the Short Call on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.