A is a contract that gives the buyer the right (but not the obligation) to buy 100 shares of a stock at a specific price ( Strike Price ) before a certain date ( Expiration ). 2. Buying Call Options (Bullish)
The stock stays below the strike price. You keep the entire premium as profit.
Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend. buying and selling call options
Most brokers require a brief application to "unlock" options trading levels.
Use a Limit Order to ensure you pay or receive the specific price you want. A is a contract that gives the buyer
High IV makes options more expensive. Buying when IV is low and selling when IV is high is a common strategy. 5. Steps to Trade
You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer. You keep the entire premium as profit
Limited to the premium you paid. If the stock doesn’t reach the strike price by expiration, the option expires worthless, and you lose 100% of your investment.