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You could either buy a higher call and create a credit spread to hedge the short call option

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Buy some of the stock and use it like a covered call strategy.

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Q: How do you hedge a short call option position?
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What do you call it when the place where position equals zero?

The origin.


What is 235.709 to the nearest hundredths?

What we have with the number 235.709, and rounding to the nearest hundredths is knowing your decimal positions. If we had a number "1.abcde..." we would call the number 1 = whole number (scientific notation 1.01) we would call the position "a" = tenths (scientific notation 10-1) we would call the position "b" = hundredths (scientific notation 10-2) we would call the position "c" = thousandths (scientific notation 10-3) we would call the position "d" = ten thousandths (scientific notation 10-4) we would call the position "e" = hundred thousandths (scientific notation 10-5) and this numbering system would continue. In actuality, people might talk about "thousandths," but rarely list anything beyond that (because it begins to become a mouthful! and awkward to say). So then Scientific Notation is used. Do you see how much easier it is to say 10-5 versus "a hundred thousandths"?) The exponent being a negative number informs us how many zero's we need to place to the right of the decimal point. So, 10-5 = 0.000 001 After reviewing what is being asked, we can get back to your original question: "round to the nearest hundredths." You see that 235.709 has values to the "thousandths" position. Therefore, we need to drop a position to get to the "hundredths" position. With .709, you can see that the "9" is higher than 5, so you would carry 1 to the next position (the zero would become one), and you now .71 which is to the "hundredth" position. Your answer would then be 235.71 Now, what would be your number if it was rounded to the nearest tenth?


Can a number be assigned that only one phone is able to dial it?

The only way to do this - is to have the phone system they have in america. American people have the option to set up an 'allow' list - to prevent unwanted calls. You would simply have the only number permitted to call you, programmed into the system. No such option currently exists in the UK.


What is the physical name for fourth order derivatives?

We call "jerk" the third order derivative of position with respect to time, that is, the variation of acceleration. Some say that the derivative of jerk with respect to time (the fourth derivative of position with repsect to time) is called "jounce" or "snap".


What do you call the combination of horizontal and vertical axis?

The combination of a horizontal axis and a vertical axis is called a Cartesian coordinate system, or in short, a graph.

Related questions

What long position is necessary to hedge a short call option?

It depends on whether the short call is covered or naked. If you have a short covered call (you own the stocks you wrote the call on), you wouldn't hedge it--if the call gets exercised you turn over the stocks you own and call it good. If you have a short naked call (you don't own the stock), hedge with a long call that has a strike price no more than the strike price of the short call. Maybe a few bucks less, if you can get it--if the counterparty to your short call exercises it, you exercise your long call, turn over the stock you received. Your profit will be the difference between the premiums on the calls, plus the difference between the strike prices.


How do you hedge a call option?

You hedge a call you sold by purchasing a put in usually the same security.


If you use call options to hedge a short sale does exercising the call close out the short?

No. The only way you can close a short is by purchasing the stock and returning it to whoever you borrowed it from.


What is to spread an option?

To spread an option, or to create an option spread, is to put on a corresponding short position onto your existing long position (or vice versa), in order to create options spreads with specific payoff profiles. For instance, if you bought a call option, it would have limited downside risk with unlimited profit potential. But if you sold an out of the money call option on top of that call option, you would create a call spread which lowers capital outlay but also limited upside profit potential.


Explain the difference between a call option and a long position in a futures contract?

The only difference between a long call option and a long futures position is the derivative itself--one of them is an option, the other is a futures contract.


What do you call a group of bushes called?

a thicket


What happens if you write a covered call with a LEAP and someone wants to exercise the underlying option?

If you are "called" on your short option you will have to sell the Underlying contract for that option at the option's strike price, which will likely be the stock itself. You will then have two positions; a long LEAPO and a short stock. http://www.optiontradingtips.com/strategies/covered-call.html


What did Beatrice Potter call the hedge hog?

Mrs. Tiggy-Winkle


What is the proper way to sell call options to protect a long stock position?

A call option is the right to buy a specific stock at a set price (known as the strike price). for this "Right" to lock in a price, the option buyer pays the seller (also known as the grantor) money which is known as the Option Premium. Now here's where most folks get tripped up . . . You can enter the market by Buying the call (go long) or selling the call (grant, go short, or sell). If you buy the call, your risk is limited to the money that you paid the seller, i.e. the Option Premium. Your potential profit is unlimited, in the sense that if you hold the right to buy Apple at $500, you would continue to make money provided Apple continues to rise. However, if you are the seller or grantor - you sell a call - your profit is now limited to the Option Premium that you received, and your risk is unlimited. By selling the option you have essentially made a price guarantee on a stock in exchange for a lump sum payment - the option premium. So some investors utilize what is called "Covered Calls." They buy the underlying stock, say 1000 shares of apple. They are now "long" apple. Next they "Grant" (sell) call options against their long apple position. They receive the "option Premium" on the calls from the buyer, which is credited in their account. They are now long the stock, and short the call options. If apple stays the same or goes down, they owe the option purchaser nothing, and get to keep his money (option premium) once the options expire. If the price rises, the grantor is a loser on the option, but is covered by his long apple stock position, example - if he bought Apple at 400 and then granted Call options against it at a strike price of 400, if apple goes to 500 he essentially takes his winnings on his Apple Stock, and passes them (covers) his call option losses. So to clarify, your answer by selling calls against a long stock position, you lock in the option premium, which could essentially act as a limited cushion in the amount of that premium, should the stock price remain unchanged or fall in an amount of less than the option premium received.


If prices drop what happens to call option prices?

If the price of an underlying commodity or security drops, the value of call options will decline as well. If you are long the calls this would be bad. If you are short the calls this would be good. Long Call - Risk Limited to Option Premium Paid, Profit Unlimited. Hoping for Market Rise. Short Call - Risk Unlimited, Profit limited to the premium received for the option. Hoping for Market Decline, or stay the same. Long Put - Risk Limited to Option Premium Paid, Profit Unlimited. Hoping for Market Decline. Short Put - Risk Unlimited, Profit limited to the premium received for the option. Hoping for Market Rise, or stay the same.


Is call option and buy option are same or not?

As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."


What happens when you Short a call option?

"Shorting a call" is better known as writing a naked call. Basically, a naked call is a call on a position you don't hold, and it has unlimited risk--if you get exercised and the strike price plus the premium is lower than the stock price, you must make up the difference out of your margin account--or you'll receive a margin call from your brokerage. Many brokerages won't allow you to write a naked call, and the ones that will demand a very large margin account and a lot of experience in trading options.