 Welcome to the options beginner series again in this course. We are going to sell a call option Selling a call option is also called as short calls and we're going to use GLD GLD is an ETF It's the gold ETF. It's one of the largest ETFs in the market And we're going to use GLD as the example for a short call in this course We are going to look at the basic strategy of selling a call So when we are selling a call we are opposite of a call buyer If we are selling a call we must be bearish so the GLD is The gold ETF and it trades for approximately one tenth of the gold price so it had a high of 174 a couple of months ago and You can see that the gold gold ETF is about one tenth of the gold futures The gold futures are actually Gc so if we see a slash Gc Gold is trading at about 1641 and the gold ETF is trading for about 159 or 160 So it's not exactly one tenth, but it's very close to it If you look at the GLD chart, you can see that it's on a downtrend So it's been going up and down for the past month or so, but it's had a high of 174 and then this was a very strong move to the downside on Feb 29 so since that move it's never really come back and try to Go through that again Even if gold goes up a little bit. It's probably going to face some resistance right here. This was and Also over here. You can see some Again some volume here. Actually, this was more of a support volume temporary support But this is a fairly decent size down bar again So my sense is even if GLD tries to go up. It's probably not going to go much Higher than maybe 162 or 163 so when we are selling a Call we are bearish, but we also have to bear in mind. We have to put probability on our side So I want to be able to sell something at the 165 or 166 level that gives me this much room for the for for for the GLD ETF Even if it starts going up, I don't expect it to go up beyond 165 or 166 So if I sell my short call here at this level 166 there's a lot of resistance and there's been some selling pressure on this particular bar at 163 so even if gold tries to go up I it'll be difficult for gold to move past this point So by putting our short call at 165 or 166. We are actually taking a fairly safe