The stock price rises above your strike price plus the premium you paid (the Breakeven ).
Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right. buying and selling call options
If the stock skyrockets, you are obligated to sell the shares at the strike price, missing out on all gains above that level. The stock price rises above your strike price
Theoretically unlimited. As the stock goes up, the value of your option increases. the option expires worthless
Limited to the premium you paid. If the stock doesn’t reach the strike price by expiration, the option expires worthless, and you lose 100% of your investment.
The stock price is higher than the strike price.
The stock price is lower than the strike price.
