Single Leg

Outright Calls

A long or short call with nothing else alongside it.

Expiration payoff profile for Outright Call
Payoff at expiration

An outright or naked call position is a long or short position in a call without any other offsetting position, such as a position in the underlying stock or another option.

A long call position has risk that is limited to the price paid for the call option. A naked short call position has theoretically unlimited risk, since the underlying stock could appreciate infinitely.

Retail option traders are cautioned that selling naked calls is extraordinarily risky.

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