Learn/Options Strategies/Long Call - At a Glance

Long Call - At a Glance

Here is a brief summary about long call strategy.
AuthorWebull Learn

Strategy

  • Long Call

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Alternative Name

  • n/a

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Pre-Requisite Strategy Knowledge

  • Long Stock

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Legs of Trade

  • 1 leg
  • Buy 1 XYZ call

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Sentiment

  • Bullish

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Example

  • Long 10 XYZ January 50 calls for $1.25, plus fees and commissions

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Rule to Remember

  • n/a

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Max Potential Profit (GAIN)

  • Unlimited

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Break-Even Point

  • The breakeven point occurs when XYZ stock price is trading equal to the strike price plus the net premium paid.

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Max Potential Risk (LOSS)

  • Net Premium Paid (debit)

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Ideal Outcome

  • XYZ price rises significantly above the strike price plus net premium paid

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Margin Requirement

  • No

Early Assignment Risk

  • Early assignment risk applies to short options positions only.
  • Long options have no risk of early assignment.

Chart

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-‌Powered by The Options Institute

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*Cboe and Webull are separate and unaffiliated companies. This content is provided by Cboe and does not reflect the official policy or position of Webull. This content is for educational purposes only and is not investment advice or a recommendation or solicitation to buy or sell securities. Options are complex financial products. As such, you must ensure you have read and understood our Standard Client Agreement, Target Market Determination, Product Disclosure Statement, and Characteristics and Risks of Standardised Options
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Lesson List
1
Long Call (1)
2
Long Call (2)
3
Long Put - At a Glance
4
Long Put (1)
5
Long Put (2)
6
Short Put - At a Glance
7
Short Put (1)
8
Short Put (2)
9
Short Call - At a Glance
10
Short Call (1)
11
Short Call (2)
Long Call - At a Glance
13
Protective Put (Long Stock + Long Put)
14
Covered Call
15
Introduction to Buy Writes and Cash Secured Puts
16
Why Should Investors Consider Buy Writes and Cash Secured Puts?
17
Selling Cash-Secured Puts for Income: Put Your Idle Cash to Work!
18
Pros and Cons: Selling Options for Income
19
The Importance of Strike Selection When Selling Options
20
Bear Call Spread
21
Bear Put Spread
22
Bull Put Spread
23
Bull Call Spread
24
Put Backspread (also called Ratio Volatility Put Spread)
25
Call Backspread (also called Ratio Volatility Call Spread)
26
Long Call Calendar Spread
27
Long Call Butterfly
28
Long Strangle
29
Long Straddle
30
Short Strangle
31
Covered Strangle
32
Collar (Long Stock + Long Lower Strike Put + Short Higher Strike Call)