LONG CALL OR BUY CALL OPTION STRATEGY
0
LONG CALL OR BUY CALL
Buying a call is the most basic of all options strategies. Buying a Call means you are very bullish and expect the underlying stock /index to rise in future. You can profit if the stock rises. In fact your profits are theoretically unlimited, since there is no limit on how high a stock price can go. As the stock price / index rises the long Call moves into profit more and more quickly.
This strategy also has limited risk, The maximum risk is the cost of the option. since you cannot lose more than you paid for the option. However, while the potential loss is limited to the premium paid for the call.
Buying calls can be an excellent way to capture the upside potential with limited downside risk.
STRATEGY : BUY CALL OPTION
When to Use: Investor is very bullish on the stock / index.
Risk:Limited to the Premium.
Reward: Unlimited
Breakeven: Strike Price + Premium
