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stock will go up
Buy a call
Stock will go down
buy a put
Want income + own shares
Sell a cover call
Want income + willing to buy shares
Sell cash-secure put
Stock rises after cover call
Shares may be called away
Option expires OTM
you loose the premium
High volatility
Option becomes more expensive
Low volatility
Option becomes cheaper
Bought call + stock drops
Call looses value quickly
Sold CSP + stock crashes
You get assigned 100 shares