Naked Short Call

bearish1 leg

Also known as: Uncovered Call · Short Call

Bearish — collect premium. UNLIMITED LOSS unless covered.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

You collect a premium for taking the obligation to sell 100 shares at the strike if assigned. If the stock stays below the strike, the premium is yours.

When to use it

Rarely, and only with full understanding: this is the textbook "picking up pennies in front of a steamroller" trade. Professionals use it inside margin frameworks with strict risk controls.

What can go wrong

UNLIMITED. A stock can gap far past any strike overnight, and the loss is uncapped. On our platform this structure is flagged for conservative profiles, and one tap converts it into a defined-risk spread by buying a protective wing.

New to options? Start with the free curriculum — or see which strategy fits your outlook.

Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.