You profit on a call when the underlying asset increases in price. These are tax management, income generation and speculation. The call option writer is paid a premium for taking on the risk associated with the obligation.For stock options, each contract covers 100 shares. Note: This article is all about call options for traditional stock options. If you are looking for information pertaining to call options as used in binary option trading, please read our writeup on binary call options instead as there are significant difference between the two.
Buying Call OptionsCall buying tge the simplest way of trading call options. DescriptionA long straddle is a combination of buying a call and buying a put, both with the same strike price and expiration. For example, the investor might be expecting an important court ruling in the next quarter, the outcome of whic.