Long Call options strategy
A long call is the simplest bullish options strategy: you buy a call option to profit from a rise in the underlying above the strike price, with risk limited to the premium paid.
How the long call is built
Buy 1 call option at a chosen strike. Example: buy the 200 call for a premium of 8.
Profit and loss at expiration
The expiration payoff is calculated as: Profit = max(S − K, 0) − premium, where S is the price at expiration and K is the strike.
- Maximum profit
- Theoretically unlimited — profit rises point-for-point with the underlying above the breakeven.
- Maximum loss
- Limited to the premium paid (the 8 in our example, or $800 per contract).
- Breakeven
- Strike + premium. In the example, 200 + 8 = 208.
Worked example
With a 200 strike bought for 8, at an expiration price of 220 the payoff is 220 − 200 − 8 = $12 per share, or $1,200 for one 100-share contract.
When to use it
Use a long call when you have a clearly bullish view and want defined, limited downside plus leverage on the upside. It is often preferred over buying the stock when you want to control risk or commit less capital.
Managing the risk
Time decay works against you: if the underlying stays flat, the option loses value as expiration approaches. Size positions so the total premium is an amount you can afford to lose in full.
Frequently asked questions
What is the maximum loss on a long call?
The most you can lose is the premium you paid for the call, no matter how far the underlying falls.
When does a long call break even?
At expiration, a long call breaks even when the underlying equals the strike price plus the premium paid.
Model this strategy
Open the free OptCurve calculator to plot the long call payoff, mark breakevens, and overlay it with other strategies.
Open the P&L calculator