Long Call option strategy
Buying 'Call option' is the most basic & simplest strategy. It is recommended when your outlook on the underlying asset is positive & you expect the underlying asset price to rise.
Payoff at expiry
Nifty, lot size 65 · Nifty future 22,858 · 19 Oct 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | ATM Call | 22,850 | 1 | 65 | ₹131.02 |
How it works
- Buy 1 ATM call at the 22,850 strike for ₹131.02, paying the premium.
- You pay a net ₹8,516 upfront for the position. This is the most you can lose.
Below 22,981 you lose, up to ₹8,516.
Above 22,981 you profit, and profit keeps growing as Nifty rises.
Set-up: Buy 1 lot ATM Call.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 21,500 | −6% | −₹8,516 |
| 22,150 | −3% | −₹8,516 |
| 22,650 | −1% | −₹8,516 |
| 22,850 | Unchanged | −₹8,516 |
| 23,100 | +1% | +₹7,734 |
| 23,550 | +3% | +₹36,984 |
| 24,250 | +6% | +₹82,484 |
How the Greeks affect it
When to use
When you expect a rise in the underlying asset price.
- Unlimited profit potential with capped risk.
- Possibility of greater leverage than owning the stock.
Things to watch
- 100% potential loss of premium in case of inappropriate strike, choice of stock, time decay.
- Greater leverage could prove detrimental in case the expected outlook fails.
Long Call: questions
What is a Long Call strategy?
Buying 'Call option' is the most basic & simplest strategy. It is recommended when your outlook on the underlying asset is positive & you expect the underlying asset price to rise.
When should you use a Long Call?
When you expect a rise in the underlying asset price.
How do you set up a Long Call?
Buy 1 lot ATM Call.
What is the maximum profit of a Long Call?
Maximum reward remains uncapped.
What is the maximum loss of a Long Call?
Since it is a net debit trade you pay for buying the call option upfront i.e. Premium. Your maximum risk is capped.
What is the breakeven of a Long Call?
With Nifty at 22,858, the example on this page breaks even at 22,981 at expiry.