The stock price rises above your strike price plus the premium you paid (the Breakeven ).
Most brokers require a brief application to "unlock" options trading levels. buying and selling call options
Theoretically unlimited. As the stock goes up, the value of your option increases. The stock price rises above your strike price
Stock XYZ is at $100. You buy a $105 Call for $2. If XYZ hits $110, your option is worth at least $5. You turned $2 into $5 (a 150% gain), while the stock only moved 10%. 3. Selling Call Options (Bearish/Neutral) time is your enemy
Options lose value every day they get closer to expiration. As a buyer, time is your enemy; as a seller, time is your friend.
