Long Call - At a Glance
Here is a brief summary about long call strategy.
AuthorWebull Learn
Strategy
- Long Call
Alternative Name
- n/a
Pre-Requisite Strategy Knowledge
- Long Stock
Legs of Trade
- 1 leg
- Buy 1 XYZ call
Sentiment
- Bullish
Example
- Long 10 XYZ January 50 calls for $1.25, plus fees and commissions
Rule to Remember
- n/a
Max Potential Profit (GAIN)
- Unlimited
Break-Even Point
- The breakeven point occurs when XYZ stock price is trading equal to the strike price plus the net premium paid.
Max Potential Risk (LOSS)
- Net Premium Paid (debit)
Ideal Outcome
- XYZ price rises significantly above the strike price plus net premium paid
Margin Requirement
- No
Early Assignment Risk
- Early assignment risk applies to short options positions only.
- Long options have no risk of early assignment.
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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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