Long Call
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Direction
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Bullish
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Strategy Type
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Capital gain
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Legs
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Buy call
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Max Reward
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Uncapped
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Max Risk
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Premium paid
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Time Horizon
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Long or short
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Risk Profile
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High
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Payoff Diagram
Description
Long calls allow the investor to gain from rises in stock price however offer protection if the stock price falls.
Steps Involved
Buy call
Rational
A call can be bought if the stock is expected to rise above the option's exerscise price.
Long Call Tutorials
In this Minc Webinar Stuart McClure expands on his Australian Option Basics course, drilling down on Long Calls and Puts. Stuart continues to explain the specifics, listing advantages/disadvantages, options pay-off diagrams, and using Puts as insurance.