The Basics of Buying Call Options

July 10, 2017


By Roger

In very basic terms, when you purchase a call option, you profit if the underlying stock goes up and you MAY lose money if the underlying stock moves lower. Because you don't own the actual underlying asset, buying calls is substantially cheaper than buying stocks or any other underlying asset that you may be interested in trading. When you buy a call, you gain the right to buy the underlying asset at a specified price

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