Long Call
Components
A long call is simply the purchase of one call option.
Long Calls
Risk: limited
Reward: potentially very high
General Description
Entering a long call position simply entails buying call options.preferably ones that are in-the-money.
Long Call
The purchase of a call option in anticipation that the underlying asset will rise in price. ...
Long Combo ...
A long call position combined with a short put of the same series.
Synthetic position
A strategy involving two or more instruments that has the same risk-reward profile as a strategy involving only one instrument.
Synthetic Long Call: A long put and along stock or future.
Synthetic Long Put: A long call and a short stock or future.
Synthetic Long Stock: A short put and a long call. .' ...
If you SOLD your long call to help cover your short, you'd receive both intrinsic value AND remaining time value from the market sale - in other words, you'd bring in a greater amount of money and would enhance your profits.
Make sense?
[NYMEX] box transaction An option position in which the holder establishes a long call and a short put at one strike price and a short call and a long put at another strike price, all of which are in the same contract month in the same commodity.
Box: A long call and a short put at one exercise price, and a short call and a long put at a different exercise price. All four options must have the same underlying entity and expire at the same time.
Strangle An option spread strategy involving a long put and a long call or a short put and a short call with different strikes but the same expiration. The most common strangles involve out-of-the-money options.
Related: Markowitz diversification Naked strategiesAn unhedged strategy making exclusive use of one of the following: long call strategy (buying call options), short call strategy (selling or writing call options), ...
The return frontier of the long call option is the familiar hockey-stick pattern shown as the dashed line. The underlying futures price is at F so the call option is at-the-money.
Options: There are four basic option trades:Long call - you have the right but not obligation to buy an asset at an agreed price on a future dateShort call - if the long call holder exercises the option to buy, ...
Long straddle : A compound option that consists of a long CALL and a long...
Long strangle : A compound option that consists of a long CALL and a long...
Long white empty line : See Long white line.
Long white line : This is a bullish line.
In theory, the potential profit on a long call is unlimited as long as the underlying value continues to rise. The potential loss is limited to the premium paid for the contract.
A compound option strategy that consists of a number of long calls with lower strike prices and a larger number of short calls with a higher strike price. The maximum profit is realized when the currency price is at the higher strike price.
Essentially what occurs with a synthetic option is that the process of creating this type of option artificially creates a condition that mirrors a payoff of an underlying transaction or position that has a long call and a short put that have the ...
An unhedged strategy making exclusive use of one of the following: long call strategy (buying call options), short call strategy (selling or writing call options), long put strategy (buying put options), ...
An options trader can be a long Call or a short Call. In the first case, the trader has bought the call contract and has the right to exercise it.
Famed technical analyst and Elliott wave expert Robert Prechter has long called for the bear market we are now in the midst of.
In order to interpret the diagonals we need to introduce the straddle, which is a combination of a long call and a long put both at a strike price equal to the current stock price (at-the-money).
The long call is used by traders who believe a price will increase. The short put is used by traders who believe the price will decrease.
(Here we are assuming that the implied volatility of our longer-dated calls does not drop.) On the upside, as the long calls move into the money, the gains are unlimited.
For example, a long call position may be delta hedged by shorting the underlying stock. This strategy is based on the change in premium (price of option) caused by a change in the price of the underlying security.
Call profit/loss - For a long call, equal to the call value minus the premium. For a short call, equal to the premium minus the call value.
Call value - At expiration, equal to the futures price minus the strike price of the call.
An option position in which the owner establishes a long call and a short put at one strike price and a short call and a long put at another strike price, all of which are in the same contract month in the same commodity. See also: Arbitrage
[MORE] ...
A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.50 strike price, two short calls at a $6.
Butterfly Spread: A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.
You will exercise your long call and your short call will be assigned. They cancel each other out leaving you with no residual position. This scenario occurs when the stock price closes lower than the lower strike call involved in the spread.
A strategy where the total positive deltas of a position (long futures, long Calls, short Puts) equals the total negative deltas of that position (short futures, short Calls, long Puts).
Demand Index (DI) ...
Combination Spread: A technique involving a long call and a short put, or a short call and a long put. This technique is also called a fence strategy.
Protected Strategy
A position that has limited risk. A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination). See also Combination and Straddle.
Long calls and short uncovered calls: strike price plus premium.
2. Long puts and short uncovered puts: strike price minus premium.
3. Short covered call: purchase price of underlying stock minus premium.
4.
The first is to exercise the option and acquire the underlying futures contract at the strike price. The second is to offset the long call position with a sale and realize a profit.
A synthetic long futures position is created by combining a long call option and a short put option for the same expiration date and the same strike price.
An option strategy that is equivalent to the underlying stock. A long call and a short put is synthetic long stock. A long put and a short call is synthetic short stock.
Technical Analysis ...
A short put and a short call or a long put and a long call with the same expiration date and different strike prices.
Butterfly ...
A short call is covered if a long call of the same underlying security is owned in the same Account with the same or lower strike.
A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination). The Ride The Flow System is an example of a protected strategy.
In options trading it refers to a position consisting of one long call and one call option or one long put and one short put option. In either case, they are referred to as one leg of the spread.
Synthetic stock
An option strategy that is equivalent to the underlying stock. A long call and a short put is synthetic long stock. A long put and a short call is sythetic short stock.
Each synthetic Forward Contract consists of a long call and a short put, on the same underlying instrument, with the same strike and expiration.
 See also: Option, Long, Options, Call, Market
  
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