Copyright (c) 2009, Commodity Trading School, All Rights Reserved! Futures Traders Helping Future Traders Option Strategy #1: Long Call Option Buy A Call Use this strategy when you are very bullish the market.  The more bullish you are the further out of the money (higher strike price) you can buy.  No other position can give you as much leverage with unlimited profit potential and limited downside risk. Use this strategy when you want to profit from rising market.  The break even at expiration is equal to the strike price, plus the premium paid for the option.  For each point the market goes above break even, profit increases by one point. The buying of options has limited risk, which is what makes them so attractive; your losses are limited to the premium amount you paid for the option.  The maximum loss is realized if the market is below the strike price at expiration.