Long Call
Options strategy · Level 2 · Long options & hedges
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Pay a premium for the right to buy 100 shares at the strike. Leveraged upside, and you can never lose more than what you paid.
Where Tradecraft teaches it
Level 2 · Long options & hedges, in the lesson “Buying calls and puts”: Pay a premium for the right to profit from a move — your risk is capped at what you paid.
Related terms
- Long PutPay a premium for the right to sell 100 shares at the strike.
- Defined riskA position whose worst-case loss is known and capped at entry — any long option, or a spread whose long option limits the short one (verticals…
- Long premiumBeing a net buyer of options: you pay up front, time decay works against you, and big moves or rising IV help.
- CollarOwn the stock, buy a put below and sell a call above.
- ConversionLong stock + long put + short call, same strike and expiry.
- Covered PutThe mirror of a covered call: you are short 100 shares and sell a put below.