buying call

Option trading strategies for stocks that are rising

The benefit of stock options trading is that it requires less money than buying stocks. second thing for any stock option is that a stock may rise upward in price by 1% and the same price movement will cause the option to rise in price by 10%. In stock options trading the traders can make money when stocks price rise without buying the shares. Buying Call Option ... A Call Option gives the right but not obligation to buy shares of a stock at a specified price on or before the expiry date. [caption id="attachment_2286" align="alignleft" width="196"]         Long Call ; Buying call [/ca...
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Option strategy: Call Backspread

This strategy is also known as reverse call ratio spread, it is a bullish strategy that involves selling a number of call options  at lower strike price  and buying more call option of same underlying stocks at the higher strike price.  Profit potential is unlimited when stock price makes a strong move to the upside beyond the upper break even point. Profit =Price of underlying- strike price of Long call- Max loss. The risk is limited and is taken when the  underlying stock price at expiration is at a strike price of the long calls purchased.         
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