The most basic bullish options strategy — buying a call option gives you the right to buy the underlying at the strike price. You profit when the stock rises above your breakeven (strike + premium). Your maximum loss is limited to the premium paid.
Unlimited
Limited to: Premium paid
Strike Price + Premium paid
Long 1 Call
Unlimited profit potential. Limited risk to premium paid.
When you expect a significant upward move in the stock. When you want leveraged bullish exposure with defined risk. When you want to risk less capital than buying shares outright.