How To Buy Calls Online

After subtracting your initial $600 investment, you’ve made a $1,400 profit .

The earnings report drops, and it’s a massive success. Netflix stock surges to . Because you own the "right" to buy those shares at $400 , your contract is now "in-the-money". how to buy calls

Imagine you’re watching a company like Netflix, which is trading at . You’re convinced their upcoming earnings report is going to be a blockbuster. Instead of buying 100 shares for a steep $39,000 , you decide to "buy a call". The Setup: Buying the "Right" Because you own the "right" to buy those

Each share in your contract is now worth $20 more than your strike price ($420 - $400). Instead of buying 100 shares for a steep

In this scenario, while a regular shareholder saw a ($390 to $420), your call option delivered a 233% return on your $600. The Reality Check: What if it Fails?