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root strategies
Long Call
Analyzing the risk profile of a long call strategy
Variation In Strike Price
Let's take a look at how selection affects this strategy. Pay close attention to the delta of each strike. Notice how the farther the strike is, the lower the total risk, but the worse the break even. Long options allow you to risk a small amount to make a potentially large amount, but with very unfavorable odds of success.
25Δ:
50Δ:
75Δ:
