Long Call

Description

Buying a Call option, expecting a significant price increase.

Trading Logic

Leveraged bullish bet. Risk limited to premium paid, unlimited potential.

Practical Example

Stock at $100. Buy a $105 Call for $3 premium.

P/L Curve

Chart Description
  • X-Axis: Stock price at expiration
  • Y-Axis: Expected P/L ($)
  • Green area: Profit; Red area: Loss