Long Call


Buy a Call Option

Margin Requirement

No, pay premium


  • Maximum futures price is established
  • Lower futures price may improve your buying price
  • Flexible, offset at any time, receive remaining value
  • Maximum flexibility for adjustments to both higher & lower prices


  • Premium paid in full at time of purchase. Can be substantial for ATM or ITM call option
  • Most expensive option strategy alternative

When to Apply

  • If upside risk is undefined or hard to define
  • If flexibility to participate in all lower prices is necessary
  • If capital constraints require maximum pre-defined margin exposure
  • If low implied volatility environment historically and/or seasonally

Potential Adjustment

  • In a rising market, roll call up to a higher strike, and/or sell higher strike call against position to help offset initial cost by creating a credit
  • In a falling market, roll call down to a lower strike, and/or sell lower strike put against position to capture savings from drop in price