In the options market, the Long Call is one of the most common strategies.
When you’re bullish on a stock in the short term but don’t want to commit big capital, a Long Call lets you join the move with small cost, capped risk, and amplified upside.
📒 The Options Handbook sums up some key lessons on using Long Calls—
▶ When to Use a Long Call? 📈
Use it when you’re bullish short-term, but want to keep your capital free. Or if you only expect a short-term rally and want to avoid the risk of holding shares long term.
▶ Don't Wait for Expiry by Default ⏳
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If the stock jumps and the option gains value quickly, consider locking in profits early.
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If the stock moves slowly and the expiry is near, reassess whether it's worth holding.
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If the move doesn't happen, don't hold out in hope, cut the loss before the option hits zero.
▶ What Are the Risks? ⚠️
Time works against you. If the stock doesn't move up quickly, the option loses value each day — that's time decay.
Also, if the market already expects big moves, the call might be expensive. That's implied volatility at work.
▶ Takeaway 🎯
A Long Call is a powerful way to leverage small capital into bigger gains. But if you just buy calls blindly, the win rate is low—and higher leverage often means lower odds.
You're not just relying on direction — you're also depending on timing and momentum. Even if you get the move right, the trade can fail if it’s too late or too weak.
🎁 You’ll find 5 beginner-friendly and 4 advanced strategies in The Options Handbook—now available in the Tiger Coin Center! 🐯
>> Redeem Options Handbook Now <<
>> Click here for the Simplified Chinese version <<
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