How To Buy Calls Apr 2026

You buy with a strike price of $400 that expires in one month. This contract costs you a "premium" of $6.00 per share, or $600 total (since one contract covers 100 shares). Your Risk: The most you can lose is that $600 premium.

Your contract is now worth $2,000 ($20 x 100 shares). how to buy calls

Theoretically unlimited if the stock price skyrockets. The "Aha!" Moment: Leverage in Action You buy with a strike price of $400

Each share in your contract is now worth $20 more than your strike price ($420 - $400). how to buy calls