Bull Call Spreads
[Debit]
Bull Put Spreads
[Credit]
Bear Call Spreads
[Credit]
Bear Put Spreads
[Debit]
Call Butterflies
[Short ATM, Long OTM]
Call Butterflies
[Long ATM, Short OTM]
Put Butterflies
[Short ATM, Long OTM]
Put Butterflies
[Long ATM, Short OTM]
Iron Butterflies
[Short ATM, Long OTM]
Iron Butterflies
[Long ATM, Short OTM]
Iron Condors
[Long Inner, Short Outer]
Iron Condors
[Short Inner, Long Outer]
Straddles
[At-The-Money]
Historical Price Return Distribution Report
Forward-Looking Earnings Dates Report
Recent Dividend Announcements and Guidance Report
Future Ex-Dividend Dates Report
Option Order Flow Sentiment Screener
Week-by-Week ATM Straddle Performance Report
Symbol ATM Straddle Performance
Seasonality Screener By Calendar Month
Seasonality Monitor By Calendar Month
Earnings Stock Pattern Screener
Earnings Option Strategy Screener
Event-Driven Historical Insights
At-the-Money Option Straddle Screener
Large Dollar Volume Burst Trades
Option Contract Historical Data Analytics
Option Contract Implied Volatility Chart
Option Contract Time And Sales
Option Contract Single-Leg Trades
Option Contract Multi-Leg Trades
Buying a long out-of-the-money (OTM) call is a very simple option strategy. It shares many aspects of the Long Call ATM, but you're buying an out-of-the-money call instead. As a result, your initial cost is lower, but the stock must move a greater amount to the upside to profit.
If the stock price is $100, and you want to buy an at-the-money call on the $105 strike for $1, then the stock will have to go above $106 ($105 plus $1) for the trade to return a net gain. If the stock expires anywhere below $105, your maximum loss is capped at the amount you spent on the option.
A long out-of-the-money call is often used as a speculative upside play. It probably won't cost you much to buy, and the downside risk is capped no matter how far the stock drops, but if the stock price jumps up considerably, you could profit greatly.
The break-even point is equal to the strike for the long call (strike A) plus the cost of the option.
The maximum gain is unlimited.
Your maximum loss is the amount paid for the option. If the stock is anywhere below strike A, you will lose the same amount of money.