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Comparision (LONG CALL VS LONG CALL)

 

Compare Strategies

  LONG CALL LONG CALL
About Strategy

Long Call Option Strategy

This 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.

Long Call Option Strategy

This 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.

LONG CALL Vs LONG CALL - Details

LONG CALL LONG CALL
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
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
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
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.

LONG CALL

LONG CALL