Bullish Speculation
The investor buys such a call option instead of buying the underlying
security comparing the lower cost of buying a call contract versus an
equivalent amount of stock as a form insurance.
The investor protects himself against rise in the price of the underlying
security and gets his purchase price locked by taking a Long Call.
Maximum Profit is UNLIMITED.
Maximum Loss is LIMITED to the extent of Option Premium paid.
The investor buys such a call option instead of buying the underlying
security comparing the lower cost of buying a call contract versus an
equivalent amount of stock as a form insurance.
The investor protects himself against rise in the price of the underlying
security and gets his purchase price locked by taking a Long Call.
Maximum Profit is UNLIMITED.
Maximum Loss is LIMITED to the extent of Option Premium paid.