To make a profit, the stock price must rise above your (Strike Price + Premium Paid). Stock price is above break-even
If the stock price skyrockets, your profit is theoretically unlimited. How the Trade Works 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
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 ). Buying a is a "bullish" strategy where you
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 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)