Chapter 9: Strategies for buying call options
In this chapter we will discuss some general attributes, benefits and risks specifically involved in strategies for buying call options. Generally, buyers of call options have a bullish view about the market price of a specific stock, and are looking to profit from this expected increase in market value.
The most well-known strategy for buying call options is speculating on an increase in the market value of the underlying stock. It is a basic strategy that is more popular than buying put options, as it is more easily understood. In this chapter we look at the speculative strategy as well as a number of other less well-known strategies involving buying call options.
Buying call options
When buying ...
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