Compare Strategies
LONG CALL | LONG CALL | |
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About Strategy |
Long Call Option StrategyThis is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk:
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Long Call Option StrategyThis is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk:
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LONG CALL Vs LONG CALL - Details
LONG CALL | LONG CALL | |
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Market View | Bullish | Bullish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 1 | 1 |
Strategy Level | Beginner Level | Beginner Level |
Reward Profile | Unlimited | Unlimited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike Price + Premium | Strike Price + Premium |
LONG CALL Vs LONG CALL - When & How to use ?
LONG CALL | LONG CALL | |
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Market View | Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.) | Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.) |
When to use? | This strategy work when an investor expect the underlying instrument move in upward direction. | This strategy work when an investor expect the underlying instrument move in upward direction. |
Action | Buying Call option | Buying Call option |
Breakeven Point | Strike price + Premium | Strike price + Premium |
LONG CALL Vs LONG CALL - Risk & Reward
LONG CALL | LONG CALL | |
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Maximum Profit Scenario | Underlying Asset close above from the strike price on expiry. | Underlying Asset close above from the strike price on expiry. |
Maximum Loss Scenario | Premium Paid | Premium Paid |
Risk | Limited | Limited |
Reward | Unlimited | Unlimited |
LONG CALL Vs LONG CALL - Strategy Pros & Cons
LONG CALL | LONG CALL | |
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Similar Strategies | Protective Put | Protective Put |
Disadvantage | • In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen. | • In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen. |
Advantages | • Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock. | • Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock. |