Long Call Option Calculator
bullishA long call gives you the right to buy 100 shares of the underlying stock at the strike price before expiration. You pay a premium upfront and profit when the stock rises above your break-even price.
Max Profit
Unlimited — the stock can rise indefinitely
Max Loss
Limited to the premium paid
Break Even
Strike Price + Premium Paid
When to Use a Long Call
- You are bullish on the underlying stock
- You want leveraged upside exposure with limited downside
- You expect a significant move higher before expiration
- You want to define your maximum risk upfront
Risks
- Time decay (theta) works against you — the option loses value every day
- If the stock doesn't move above the break-even by expiration, you lose your entire premium
- High implied volatility means higher premiums, reducing your potential return
How a Long Call Works
When you buy a call option, you're paying for the right — but not the obligation — to purchase 100 shares of stock at a specific price (the strike price) before a specific date (expiration).
Example
Say AAPL is trading at $195 and you buy the $200 call expiring in 30 days for $4.63 per share ($463 total).
Key Takeaway
Long calls provide leveraged bullish exposure. You can control 100 shares of stock for a fraction of the cost, but you must be right about both direction and timing.