Call option sellers believe the underlying security will end up ATM or OTM and they'll be able to keep the entire premium as profit when the option expires worthless. Your risk varies depending on your position with regard to the underlying stock as noted above. If you own the underlying stock (or buy it when you write the call) and suspect the price will decline, you can sell a covered call option to collect the premium and recover at least some of your anticipated loss or even turn a profit if you set the strike price correctly.  This type of option selling is less risky than selling a naked call option since you are not at the mercy of a rising stock price in order to fulfill your obligation to sell the underlying to the buyer. "Especially when trading shorter duration options, have a trade plan," advises Nick Griebenow, Portfolio Manager for Shelton Capital Management's Option Overlay Strategies. "This isn't like buying a stock and holding it forever – this trade will come to a close by expiration at the latest so have your exit points, both at a profit and a loss, in mind before you enter the position."