Bullish - Long Calls

Long Calls
Function: Speculation
Outlook: Bullish

When you buy calls, you are said to be long calls.  Buying calls gives investors the opportunity to leverage their investment and make more money with what they have.  However, buying calls is relatively risky.

As the chart shows, buying calls means you lose 100% of your investment if the stock closes below the strike price, but it means you will multiple your returns if the stock goes up.

Long Call Option Payoff Graph: