Lengthy calls have limitless upside potential, so traders use them to take a position within the fundamental asset's value. The most reduction opportunity could be the Preliminary high quality.
An additional critical place to notice when evaluating your options is that they have tiny to no price Except the share price is greater compared to exercising selling more info price. At last, in the event you workout your options and the value decreases, Then you definately eliminate both of those The cash youve utilized to exercise the shares together with any involved taxes.