Episode
Series 7 Exam Prep 45, Short Calls and Short Puts
- Podcast
- Open Exam Prep
- Published
- Jul 22, 2026
- Duration seconds
- 205
- Processing state
not_requested- Canonical source
- https://open-exam-prep.captivate.fm/episode/series-7-exam-prep-45-short-calls-and-short-puts
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Summary
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Selling an option creates an obligation to either sell stock (short call) or buy stock (short put). - The maximum gain for any short option position is always limited to the premium collected. - A short uncovered call has unlimited maximum loss, making it one of the riskiest equity strategies. - The breakeven for a short call is the strike price plus the premium; for a short put, it's the strike price minus the premium. - Due to their high-risk nature, uncovered short options are unsuitable for conservative, risk-averse investors. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep