Use a Limit Order to ensure you pay or receive the specific price you want.
The stock stays below the strike price. You keep the entire premium as profit. buying and selling call options
Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right. Use a Limit Order to ensure you pay
A is a contract that gives the buyer the right (but not the obligation) to buy 100 shares of a stock at a specific price ( Strike Price ) before a certain date ( Expiration ). 2. Buying Call Options (Bullish) Short-term dates (weeks) are cheaper but riskier; long-term
Limited to the premium you paid. If the stock doesn’t reach the strike price by expiration, the option expires worthless, and you lose 100% of your investment.
You don't have to wait for expiration. You can "sell to close" a bought call or "buy to close" a sold call at any time to lock in profits or cut losses.
Theoretically unlimited. As the stock goes up, the value of your option increases.