LONG CALL | bull strategy

Example: Buy call
Market Outlook: Bullish
Risk: Limited
Reward: Unlimited
Increase in Volatility: Helps position
Time Erosion: Hurts position
Break-Even Point (BEP): Strike price plus premium paid

The long call option strategy is the most basic option trading strategy whereby the options trader buy call options with the belief that the price of the underlying security will rise significantly beyond the strike price before the option expiration date.

Out-of-the-money Calls Going long on out-of-the-money calls maybe cheaper but the call options have higher risk of expiring worthless.

In-the-money Calls In-the-money calls are more expensive than out-of-the-money calls but less amount is paid for the option's time value.

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