Long Call
Buy a call option to profit from a rise in the underlying stock. This is the simplest bullish options strategy with unlimited upside potential and limited downside risk.
Payoff Diagram
How to Set Up This Trade
Buy one call option at a chosen strike price and expiration date.
Trade Setup — 1 Leg
When to Use This Strategy
You expect a significant move higher in the underlying stock before expiration. Best when implied volatility is relatively low, so the option is cheaper to buy.
Tips from the Pros
- 1
Choose an expiration with enough time for your thesis to play out — at least 30-45 days is common.
- 2
Avoid deep out-of-the-money calls; they are cheap but have a low probability of profit.
- 3
Consider taking profits early rather than holding to expiration, as time decay accelerates in the final weeks.
Quick Reference
Max Profit
Unlimited — increases as the stock rises above the breakeven.
Max Loss
Limited to the premium paid for the call option.
Breakeven
Strike price + premium paid.
Best IV Environment
Low IV
Time Decay (Theta)
Hurts (negative theta)
Risk Level
Medium RiskLearn More
Our courses cover this strategy with real trade examples and live market analysis.
Browse CoursesRelated Bullish Strategies
Other strategies for a bullish market outlook.
Bull Call Spread
A debit spread that profits from a moderate rise in the stock price. By selling a higher-strike call against your long call, you reduce cost and cap your risk — but also cap your upside.
Cash-Secured Put
Sell a put option while holding enough cash to buy the stock if assigned. This strategy generates income while giving you a chance to buy a stock you like at a lower price.
Covered Call
Own 100 shares of a stock and sell a call option against them. This generates income from the premium while you hold the stock, in exchange for capping your upside at the strike price.