Important notice
The information on this web site is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Trading in stocks and options involves risk. You can lose money. You should always seek professional advice from your stock broker. We are not stockbrokers and do not make recommendations to buy or sell any stock or option. We provide educational information for your evaluation.

Return to Options Strategy

Long Call Options, A Bullish Strategy

Long Call options are a debit strategy, unlike (Selling) Call Options that are a credit strategy.

Long Call Options offer much more potential for dollar gains then writing (Selling) Call Options where our profits are limited to the premium we received for writing the option.

When we buy a Call Option we buy the right to call out the underline security (Stock) at the strike price value that we chose to buy the call option, however we do not have the obligation, we can simply sell out the call option we

bought at any time before expiration date.

When we are planning to buy a Call Option we need to be sure that the Stock (Underline Security) we are looking at is a volatile one and with a Pattern ready to explode up.

Timing is crucial, Call Options can lose value fast if the Stock does not move in a fairly passe, when we write (Sell) Options we do not want volatility, we want then to lose their value with time, because we did receive premium for

their TIME, however when we are buying, we do want stocks that are volatile.

An Option calculator is a must when buying Options, we could be buying at Call Option today for 2.50 on XYZ stock trading at 45.00 to only see in a few days the option trading at 2.00 and the XYZ stock trading at 45.50, this

means that we bought an over priced Call Option.

1. Make sure the XYZ Stock is volatile.

2. Make sure you have a pattern that is ready to explode up.

3. Make sure the Option you are looking to buy is not over priced

4. Make sure that the correlation of the Delta and the Pattern target will allow you to at least make 100% return.

5. Make sure that you chose an expiration date with more time then the time for the stock pattern to complete.