Buying a call is a bullish bet — the value rises if the underlying moves above the strike. Selling a call is bearish or neutral, collecting the premium if the stock stays flat or falls.
Covered calls (selling calls against shares already owned) are one of the most common income strategies for long-term investors.
Practice this in Aurora
See a plain-English bull/bear/bias breakdown on any stock — no signup needed.
Open Decision Lab →Frequently asked questions
What is intrinsic value?
For a call: max(0, share price − strike). Anything above intrinsic is time value, which decays toward expiry.