Buying a Call Option – Three Alternatives

Three Alternatives to buying a call option

Introduction

buying a call option

There are many ways to trade options. The most common (not necessarily the best) way is to buy straight options. An investor who wants to go long a security can buy that security, or buy a call option. A call option gives you the right to buy the stock at certain price. The big advantage of call options is the fact that it requires much less capital than buying the stock.

For example, you will need about $55,000 to buy 100 shares of Google. At the same time, buying one December At The Money (ATM) call option will cost you only ~$1,200.

Pros and Cons of buying a call option

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steadyoptions
Kim Klaiman is a full time options trader. He has been trading stocks and options for more than 10 years. Kim is a founder of educational blog and forum http://steadyoptions.com/ SteadyOptions offers a combination of a high quality education and actionable trade ideas. We are sharing our trades with full explanation of the Greeks, the risk/reward, the entry/exit, price targets etc.

steadyoptions

Kim Klaiman is a full time options trader. He has been trading stocks and options for more than 10 years. Kim is a founder of educational blog and forum http://steadyoptions.com/ SteadyOptions offers a combination of a high quality education and actionable trade ideas. We are sharing our trades with full explanation of the Greeks, the risk/reward, the entry/exit, price targets etc.

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