long call

A long call is an options trading strategy where an investor purchases a call option, giving the right to buy a specific asset, like stocks, at a predetermined price (strike price) before a certain date (expiration). If the asset’s price rises above the strike price, the investor can buy it at the lower strike price, potentially making a profit. If the price doesn’t rise, the most they can lose is the premium paid for the option. This strategy is used when expecting an increase in the asset’s price but with limited risk.