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How Does Selling a Call Option Generate Income for the Investor?

The investor receives the option premium from the buyer immediately, which is kept as income.
Greeks.Live17.11.25

How Does Selling a Call Option Generate Income for the Investor?

Selling (writing) a call option generates immediate income for the investor in the form of the option premium. The buyer pays this premium for the right to buy the underlying asset at the strike price.

This premium is kept by the seller regardless of whether the option is ultimately exercised or expires worthless.

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