Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document:
With long calls, some people choose to swing for the fences every time, making pie-in-the-sky bets with high risk and high potential returns. That strategy could mean big wins when it works, but it could also bring a lot of strikeouts and big losses. We’ll explain how to dial back the risk a little bit for a “smarter way” to buy long calls.
Subscribe:
Outline:
0:00 Introduction
1:28 What is a long call?
3:08 Long call greeks
4:26 Mistakes to avoid
8:46 The smarter approach
15:50 Exit rules
19:02 Managing your options trades
You can download the free thinkorswim paperMoney software here:
If you don’t have a TD Ameritrade account, you can sign up for a free paperMoney® account here:
Watch our full tutorial on trading options on paperMoney® here:
We have more options education on our daily, live webcasts with TD Ameritrade education coaches. Check out our All About Options webcast here:
TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know.
Connect with TD Ameritrade:
Facebook:
Twitter:
Open an account with TD Ameritrade:
source