Selling a call option may give you the obligation to sell shares.

Name: Selling a call option may give you the obligation to sell shares.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

When you sell a call option, you are giving the buyer the right, but not the obligation, to buy the underlying asset at the strike price before the option expires. If the buyer exercises the option, you are obligated to sell the shares at the strike price.

Selling a Call Option May Give You the Obligation to Sell