What is stopping me from getting infinite free money by selling ridiculous call options?
I've bought a couple call options before, and I think I get how that works... But I'm not understanding selling calls. Why wouldn't I want to sell a call that has a strike price that's almost guaranteed to never hit and just pocket the premium? What am I missing here?
I've bought a couple call options before, and I think I get how that works... But I'm not understanding selling calls. Why wouldn't I want to sell a call that has a strike price that's almost guaranteed to never hit and just pocket the premium? What am I missing here?