What is a Short Call?

Short Call is a strategy where you sell Call Options, a bearish trading strategy. The option seller believes the underlying asset’s price will decrease. 

A call option gives the buyer of the option the right to buy the underlying security at a specified price (called the strike price) before the option contract expires

When you sell a Call option:

• You receive a premium upfront
• You are obligated to sell the asset at the strike price if the buyer chooses to exercise the option

Potential Outcomes of a Short Call Strategy:

• Maximum profit: Premium received.
  (If the price stays below the strike price, you keep the premium because the buyer won't exercise the option)
• Main risk: Potentially unlimited losses.
  (If the asset price rises sharply, your losses can keep increasing)