Long Call options strategy
A long call buys the right to purchase the underlying at the strike. Maximum loss is the premium; upside is theoretically unlimited.
- Market outlook
- Bullish
- Construction
- Buy one call option.
- Maximum risk
- Premium paid.
- Maximum reward
- Theoretically unlimited above breakeven.
- Breakeven at expiry
- Strike plus premium at expiry.
Strategy questions
- What is a Long Call?
- A long call buys the right to purchase the underlying at the strike. Maximum loss is the premium; upside is theoretically unlimited.
- What is the maximum risk of a Long Call?
- Premium paid.
Risk note
Options are leveraged and expire. Model payoff at multiple prices and volatility levels in the Options Strategy Lab before considering a position.