what is long call option?
2 Replies
kumar
(accountant)
(118 Points)
Replied 10 April 2011
Fututure trading means weapons of financial MASS destruction
---- WARREN BUFFET
Lakshmi
(Student)
(1836 Points)
Replied 12 April 2011
A long call is one of the most simple options strategies. The trader buys a call contract, and then waits for the price to move up. The call can be purchased in the money, at the money, or out of the money, and the trade goes into profit when the price moves above the strike price plus the premium (the amount paid for the call). An in the money call will have a higher premium than an at the money call, which will have a higher premium than an out of the money call, but the out of the money call needs the price to move further than the in the money or at the money calls before it will be profitable.
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