Black Friday Sale: Save 30% on all plans (Prices increase next year!) Upgrade
A simple bullish strategy for beginners that can yield big rewards. A call gives the buyer the right, but not the obligation, to buy the underlying stock at strike price A. However, you can simply buy and sell a call before it expires to profit off the price change.
The value of the option will decay as time passes, and is sensitive to changes in volatility. Your maximum loss is capped at the price you pay for the option.