Introduction to Call Strategies
If you are reading this book because you want to leverage your money to make more money, this is the chapter you’ve been waiting for. Buying calls (you can also say you are long calls) is the preferred strategy of speculators, and there is a good reason why. For a fraction of what it costs to buy stocks, you can leverage your money with a possibility to double, triple, or quadruple your initial investment.
At first glance, buying options seems a lot less complicated than selling them. As you’ll see later, the mechanics of buying calls is a breeze. The hard part, as usual, is making a profit.
Many traders agree that it can be tough to make a consistent living as a call buyer (I discuss some of the risks in Chapter ...