Buying And Selling — Call Options

High IV makes options more expensive. Buying when IV is low and selling when IV is high is a common strategy. 5. Steps to Trade

The stock price is lower than the strike price. buying and selling call options

The stock price rises above your strike price plus the premium you paid (the Breakeven ). High IV makes options more expensive

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. Steps to Trade The stock price is lower

A is a contract that gives the buyer the right (but not the obligation) to buy 100 shares of a stock at a specific price ( Strike Price ) before a certain date ( Expiration ). 2. Buying Call Options (Bullish)

Use a Limit Order to ensure you pay or receive the specific price you want.