Wednesday, May 11, 2011

Long Call Explanation

Just a quick post for those new to the game about what a Long Call is. Since I got a few questions about it.
  • A long call is simply the purchase of one call option.
  • You expect the price to rise in the long term.  
  • You risk the price dropping and not being able to sell-off and recoup losses
  • E.g. I buy twenty shares of paper silver at $38, if the price goes up, then I can make a profit.
 Just beware market manipulation and natural corrections when investing. Especially if you are trying to reap each bubble. I wouldn't recommend jumping into that level of trading right away unless you have past experience.


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