Long Calls (Buying Calls)
Buying a call option from the trade page results in long calls.
An ideal strategy if you are bullish about a crypto asset and want to leverage the rising prices.
Example: Suppose you have $30,000, and ETH is currently trading at $5,000. You can buy 6 ETH at the current price. Let's suppose by the end of next month ETH is up by 15%, i.e., ETH price now is $5750, then you make a profit of $4,500 ( $34,500 - $30,000). An excellent trade indeed ser.
Now let's use options; in this case, instead of buying ETH calls at $5,000 expiring at the same time, you paid $300 per option. You can get 100 options for this price. Ignore all trading fees; this means with a 15% increase, you get $45,000 as profit. Which is 10x the profit you would have made otherwise. Such a degen you are ser.
Total Investment | $30,000.00 |
Current Stock Value | $575,000.00 |
Strike Price Value | $500,000.00 |
Options Status | In The Money |
Total Profit | $45,000.00 |
Your max loss when buying long calls is always the premium you paid - when the asset price is below the strike at expiry. Your max profit is theoretically infinite.
Last modified 1yr ago