back

root strategies

Long Call

Analyzing the risk profile of a long call strategy

Recap

  • Long calls carry positive delta
  • Long calls are advantaged by rising IV
  • Long calls are disadvantaged by the passage of time
  • Long call delta grows into profit and shrinks into loss
  • Long calls have limited risk, and unlimited profitability
  • Long calls have a less than a 50% of POP

back

root strategies