How To Buy Calls [2027]

Theoretically unlimited if the stock price skyrockets. The "Aha!" Moment: Leverage in Action

The earnings report drops, and it’s a massive success. Netflix stock surges to . Because you own the "right" to buy those shares at $400 , your contract is now "in-the-money". how to buy calls

You buy with a strike price of $400 that expires in one month. This contract costs you a "premium" of $6.00 per share, or $600 total (since one contract covers 100 shares). Your Risk: The most you can lose is that $600 premium. Theoretically unlimited if the stock price skyrockets