Long Call and Long Put

When you have a view on an asset moving up or down, and a lot, these trades provide leverage and limited downside risk. This means that you can get some serious profit if you are right. But when do you buy calls and puts?

Buying an at-the-money (ATM) call or a put is usually the beginner's go-to trade when first starting out with options.

While we personally very rarely just buy calls and puts, these strategies form the basis of a lot of more advanced strategies, which we look at in later videos.

In this video, we explain how the long call and long put work when you choose to trade with a directional view.

At the end of this video, you should feel comfortable buying a call or a put when you have a directional view on an underlying stock and consider whether the strike you should be trading is ITM, OTM, or ATM.

Video Contents

• The Long Call Trade
• The Long Put Trade
• In-the-money (ITM), at-the-money (ATM) or out-of-the-money (OTM)?
• Using puts as a way to hedge your share portfolio
• Finding puts and calls with the options chain