Options Strategy Snapshots
The Stock Replacement Call
When you want upside exposure while limiting your downside risk, you may consider buying a call instead of shares. Here’s the third in our series of infographics meant to cover the basics of options trading strategies. Check out the snapshot below, then watch our webinar that covers this useful trading strategy.
The screenshots below represent this trading strategy in action. For example, you like MSFT stock but want to limit risk of buying stock; you buy 1 MSFT Nov 45 call for $2.65.
Source: OptionsHouse(click to enlarge)
IMPORTANT: The projections or other information generated by tradeLAB regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
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Information provided for educational purposes only and should not be considered a recommendation.