Long Call

Buying options and selling options have different profit and risk potential based on the rights and obligations of the two parties involved.

To create a long synthetic stock position, you simply buy an ATM call option and sell an ATM put option at the same strike price. This creates a bullish position with much less capital than owning stock.

A short put is a single-leg, bullish options strategy with undefined risk and limited profit potential. A short put is sold when the seller believes the price of the underlying asset will be above the strike price on or before the expiration date.

A long call is a bullish options strategy where the expectation is a rise in price prior to expiration. Buying a call option is a levered, risk-defined alternative to buying shares of stock.

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.

A long call is a bullish options strategy. Buying a call option is a levered, risk-defined, cost-effective alternative to buying shares of stock.