The value of a call option can appreciate as the price of the underlying asset increases and approaches and breaches the long call's strike price. Out-of-the-money (OTM) calls are usually cheaper than ...

Call options are one of the two major types of options, and investors have two ways to use them: either selling them or buying them. Buying, or going long, calls offers tremendous potential gains ...

Once you've entered a long call spread, changes in implied volatility will affect the value of both your purchased and sold options. As a result, the impact of implied volatility on the overall ...

For instance, if an investor is short a particular stock, they can hedge their short position with long call options – so if the short position goes against them, losses are mitigated by the ...

Options can also be traded directly—not through a broker—on the over-the-counter (OTC) market. A long call is the most straightforward call-trading strategy. If an investor is bullish on a ...

Options allow traders to profit with basic or advanced strategies, based on calls and puts, but are not risk-free, exposing granular risks.

Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Joules ...

In investing, being long on an asset means owning it and expecting its value to go up. In the world of finance and investing, the term “long” gets tossed around quite a bit, and unfortunately ...

Since the long call calendar spread relies upon stagnation in the underlying stock, your profit is dependent entirely upon your initial cost of entry and the value of the back-month option at ...