And Selling Call Options: Buying
Theoretically unlimited. As the stock goes up, the value of your option increases.
You buy a call if you expect the stock price to rise significantly. You pay a fee called a Premium . buying and selling call options
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 Theoretically unlimited
You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer. the option expires worthless
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.