Options Basics

How to Buy a Call Option

Buying a call option is a cost-effective, risk-defined alternative to buying 100 shares of stock. Learn how to buy a call option and determine the profit and loss outcomes.
How to Buy a Call Option
Kirk Du Plessis
Apr 19, 2021

In this quick tutorial we'll use AAPL stock as an example and go directly to my broker platform and walk through the steps to buy a call option anticipating that AAPL stock might rise the future. I'll also show you how to calculate your break-even price and determine the option contract multiplier all from your broker's trade tab.

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How to Buy a Put Option
Buying a put option is a cost-effective, risk-defined alternative to selling 100 shares of stock. Learn how to buy a put option and determine the profit and loss outcomes.

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