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Long Calls for Beginners: Options Learning Center

Run time:  12:31

Description

The long call option strategy involves the outright purchase of a call option, where the goal is to profit from an appreciation in the price of the underlying security.

Risk is limited to the premium paid (Net Debit) for 100 contracts of the long call option, while maximum profit is unlimited, as the price of the security can theoretically rise indefinitely.

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Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Any trading in securities or other investments involves a risk of substantial losses. The practice of “Day Trading” involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall we be liable for any loss or damage you or anyone else incurs as a result of any trading or investment activity that you or anyone else engages in based on any information or material you receive through Barchart.com or our Services.

Strategy At A Glance

Bullish
Price expected to rise.
Unlimited Profit
Potential Reward is high.
Limited Loss
Losses are limited.