Buying Call Options – Learn Options Trading
Buying a Call Option is the most basic of all the Option strategies and is ideally suited to traders who want to learn Options trading. It is the most efficient strategy to optimize a bullish outlook on a stock. Most people wanting to learn Options trading will buy a Call Option because it is similar to buying a stock. In this options trading strategies course, we take the example of Chipotle Mexican Grill (CMG) and show how the trade played out. We analyze the rationale behind entering the trade, the risk/reward profile, chart analysis and point of entry, choice of expiry and “moneyness" of the Option, time decay considerations, margin requirements, profit expectations, exit criteria, Greek analysis, its Profit and Loss profile and various other considerations. We provide a 360-degree analysis before trade entry. This is a real trade and over 15 days, and we navigate the trade to its exit point.
Learn Options Trading On CMG
Buying a Call Option is the simplest way to learn Options trading because it is similar to buying a stock. If the stock goes up, the Call option increases in value, and you can sell it for a higher price than what you bought it for. Since most people are somewhat aware of buying stocks, buying a call option is the natural way to learn Options trading.
Chart Analysis for Entry/Exit
Besides Options analysis, traders wanting to learn Options trading must also become experts in Technical Analysis. Technical Analysis can be very helpful as it has become one of the most widely used tools, even by professionals. Technical Analysis is all about crowd behavior and the actions they take collectively can give deep insights into entry and exit points.
Trade Analysis Before Entry
Before buying a Call option, a certain amount of trade analysis is required to maximize the probability of the trade. It is therefore recommended that students who want to learn Options trading also look at the courses in the Options Beginner Bundle, as it contains important aspects like Time Decay and Implied Volatility and the Option Greeks.
As mentioned above, Greeks analysis should be a part of a trader who wants to learn Options trading. The selection of strike prices, intrinsic and extrinsic values, the choice of expiry and finally, how all of these affect the position of a buyer of Call options is clearly explained. Option Greeks are covered in the Options Beginner module with a course on all four Greeks – Delta, Gamma, Vega and Theta
For any further information, feel free to contact Option Tiger Experts. Share your details to get a call back. We would be more than pleased to provide assistance in joining any of our online Options trading courses.
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