Barred Call Link

A: Usually “touch” means any time including at close. Most contracts define that if spot ≥ B at expiration, option knocks out. Check contract terms.

✅ As a writer, you sell barred calls to collect premium while capping your risk. If barrier is hit, you’re off the hook. barred call

A: Yes, writing a barred call collects premium but you face unlimited risk if barrier not hit? No – as writer, your max loss is capped because option knocks out if barrier hit. But if barrier never hit, you pay the full payoff (stock price minus strike). So writing is dangerous if barrier is far away. A: Usually “touch” means any time including at close