When you have a call option, you can calculate your profit or loss at any point by subtracting the current price from the breakeven point. The breakeven point would be $185 since that's the sum of ...

To make a profit, an options trader could buy a call option for a security they believe will go up in value. If this occurs, the option’s premium will increase, and the contract holder can ...

A stock option is a financial contract that gives the owner the right, but not the obligation, to buy or sell a stock at a ...

There are typically two ways that investors can express their views on a stock, which is by buying it and making a profit if ...

The trader then decides to set up a bull call spread to profit from this expected price increase. The trader will buy a call option with a strike price of $50 that expires in a month’s time.

Profit and prosper with the best of expert ... yet you'd like to augment the stock returns. Selling call options (the "call" component): This is the core of covered calls. By selling a call ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

Situation: Investor thinks a security will increase in price -- can buy security or a call option. If price declines, Investor has a capital loss in long position or loses his option premium when ...

naked call sellers benefit from time decay, which can erode the option's value, allowing the investor to buy it back to close at a lower price to yield a potential profit. A short call can be a more ...

Any long call options that expire OTM will expire worthless, resulting in a maximum loss for the investor. The following section covers more about potential profit and loss of a long call. *Only ...