Options Strategies
Long Call
Strategies Long Call
Component Buy call
Potential Profit
  • When the stock price/index level is above the break-even point
  • Unlimited, equals to the prevailing stock price/index level minus break-even point
Maximum Loss Total premium paid
Time Value Impact Negative
Break-even Strike price/level plus premium paid
  Net Position +1 Jun 200 Call

Component Buy ABC June $200 Call
Net Premium Pay $20
Break-even $200+$20=$220
Profit when Stock price is above $220
Potential Profit Stock price - $220
Potential Loss $20
Time Value Impact Negative