To make a profit, an options trader could buy a call option for a security they believe will go up in value. If this occurs, the option’s premium will increase, and the contract holder can ...

This would return the maximum gain on your purchased call, while both of the sold calls could be left to expire worthless. Your potential profit here is limited to the difference between the two ...

In the most basic sense, then, a call option is a bet that the underlying security will rise in price, enabling you to profit from your investment. However, call options can also be combined with ...