Long positions

Learn options trading – Buy a call ( long call )

Why buy a call when you can own the underlying, one may ask. This depends on the intentions and predictions of the holder.

Buying a call is a limited risk, unlimited reward scenario. However one needs to be careful when choosing the expiration date for the contract. You might end up out of the money, and lose everything.

Long calls are profitable in a bullish market.

This is a preview of “Buy a call ( long call )

Share

Market and trading news