Sentences with phrase «long call options»

One major advantage of using long call options rather than buying a stock outright is putting up much less capital to control 100 shares — that's the power of leverage.

In short, long call options provide unlimited profit potential with limited risk.

Long futures contracts are preferred over long call options when analysis points to the significant likelihood of the index staying just below the strike price plus call premium.

This strategy is known as a bull call spread and consists of buying, or going long a call option and combining it with a short strategy of writing the same number of calls with a higher strike price.

When the estimated market return / risk profile is strongly favorable, the Fund has the ability to leverage the amount of stock it controls to as much as 150 % of the value of the Fund's net assets, typically by investing a limited percentage of assets in long call options.

For example, if an investor wants to execute a long call option then the funds needed to purchase the stock may exceed the annual IRA contribution limit for the account.

If they want out of their long call option position while it still has time premium then they are better off just selling their option instead of exercising it.

One major advantage of using a long call option rather than buying a stock outright is putting up much less capital to control 100 shares — that's the power of leverage.

A Structured product is created by combining the economics of a long call option on equity with a long discount bond position.

Above $ 20, the investor keeps the premium income of $ 4 as well as a $ 5 profit from the long call option, but loses out on any upside above $ 20 as the short position means the stock will be called away from him or her.

Below $ 15, the long call option is worthless.

A synthetic long futures position is created by combining a long call option and a short put option for the same expiration date and the same strike price.

So if you just want to learn more about the benefits of an RRSP or how a Long Call Option Strategy works, have a look at our Education Centre to find all of our online investing resources in one place!

The long call option and the short put option are both bullish positions, but the short put option doesn't let you participate in the upside.

The maximum loss on a long call option is limited to the amount you paid for the contract.

Let's look at the issue from the point of view of both people involved in the trade: the option holder who is long the call option, and the covered call writer who is short the same call option.