Stock Option "CALL" Calculation

One of the most popular Stock Option Buying strategy is the "CALL Option"! When buying this type of option, the buyer of a CALL Option is expecting the price of the stock to go up trade higher). Just as if you were buying the actual stock shares (LONG), you are anticipating that the price of the stock will be much higher when you are ready to take profits in the future. The same anticipation applies to the "CALL Option" strategy! As the actual share price goes higher, the CALL Option price that you buy generally does the same, but in some cases a little slower. Here's a actual buy calculation of BAC (Bank Of America) "CALL" position that I bought in 2009 for a really nice profit. BAC is one of the top financial companies trying to recover from the slowing economic conditions. Generally when there is good news about the fiancial sector the share price will start to trade up, especially when earnings timeframe is approaching. In this case, BAC was upgraded by one of the analysts and that was positive news for the company, the share price traded up and I had already bought stock option positions anticipating that the share price might have a good price run soon. I was right, the share price traded up and I set my limit price to lock in my gains. As you can see, this calculation screen makes it really easy to see all of the figures and know what the actual profits will be in a snap!!! I bought the 10 CALL Option contracts for a small price ($1.45), and took my profits the same day with a pre-set limit order @ $2.00 as the price traded up on news! Here's the actual screen! Return to Program Advantages/Features!