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How To Buy A Call

Added on:8/2/2008 6:48:29 PM
In Finance and Investment Tips
 Rated by 1 users

Buying a call is the most basic options trading strategy that you can utilize when expecting an upwards price movement in a particular stock. There are many different methods for choosing an underlying security, but when you buy a call, you are essentially saying that you believe that the underlying stock´s value will increase before the option´s expiration date.

A couple of things to keep in mind when buying calls:

Options closer to expiration will cost less but also have less time to make the desired price move. 

In-the-money options may be more expensive than out-of-the-money options, but out-of-the-money options have no intrinsic value, only time value.


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