Login

Back

Long Call

bullish bullish

Buying 'Call option' is the most basic & simplest strategy. It is recommended when your outlook on the underlying asset is positive & you expect the underlying asset price to rise

Legs:1Risk:Limited RiskProficiency :Beginner

Example:

InstrumentQtyPrice
BUY NIFTY 30-Jun-26 24100 CE65101.25

When To Execute?

When you expect a rise in the underlying asset price

Trade

Buy 1 lot ATM Call

Advantages

Unlimited profit potential with capped risk

Possibility of greater leverage than owning the stock

Disadvantages

100% potential loss of premium in case of inappropriate strike, choice of stock, time decay

Greater leverage could prove detrimental in case the expected outlook fails

Long Call

Maximum Profit

Maximum reward remains uncapped

!

Maximum Loss

Since it is a net debit trade you pay for buying the call option upfront i.e. Premium. Your maximum risk is capped