What Is a Short Call — and Why Is It So Risky?

Many people are drawn to options trading because of the idea of earning consistent income by selling options.

And one of the most common ways to do that is by selling call options — known as short calls.

But here’s what most people don’t realize:

👉 Selling a call is one of the riskiest things you can do.

When you sell a call, you’re giving someone else the right to buy stock from you at a set price — the strike price — by a certain date. In return, you collect a small fee upfront, called the premium.

That premium is your maximum profit. It doesn’t matter how far the stock moves — you’ll never make more than the premium.

But if the stock goes up and keeps going… you’re in trouble.

Imagine selling a call on Tesla with a $250 strike. If the stock jumps to $300 or $350, you’re obligated to sell it at $250 — or worse, if you don’t own the stock, you’ll have to buy it at the high price and sell it for much less.

That’s called a naked call, and the risk is unlimited.

If you already own the stock, it’s called a covered call — and while there’s still risk (you give up potential upside), it’s much safer.

In this Yiddish video, I break it all down:

• The logic behind selling calls
• The math of how you win or lose
• Real-life examples
• And the warning signs every trader must know

This video is part of my full Yiddish options education series — focused on giving you clarity and confidence in the market, without hype.