Buying a is a "bullish" strategy where you pay a fee (the premium ) for the right—but not the obligation—to buy 100 shares of a stock at a set price (the strike price ) before a certain date (the expiration ).
You can control 100 shares of a high-priced stock for a fraction of the cost of buying the actual shares.
The option expires worthless. You lose 100% of the premium paid, but nothing more. How to Buy One Call Options (Beginner Step-By-Step Guide) buying an option call
The most you can lose is the premium you paid, unlike buying a stock where you could lose your entire investment if the price drops to zero.
To make a profit, the stock price must rise above your (Strike Price + Premium Paid). Stock price is above break-even Buying a is a "bullish" strategy where you
You can exercise the option to buy shares at the lower strike price or sell the option itself for a profit.
Think of it like a . You are betting that the stock price will rise significantly before the reservation expires. Why Buy a Call Option? You lose 100% of the premium paid, but nothing more
If the stock price skyrockets, your profit is theoretically unlimited. How the Trade Works