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Buying a Call Option (Long Call)
Why a trader might choose to buy a Call option
The simplest strategy for trading options is to purchase a Call option. You would do this if you think the floor price will rise and want to profit from the movement while limiting downside risk.
With a Call option, your potential profit is unlimited; i.e., the higher the floor price goes, the greater your gain.
Your loss potential is limited to the price you paid for the option. So even if the floor price went to 0, you wouldn’t lose anything beyond the option price.
Since options allow you to pay a small fee to gain exposure to a more valuable asset, you can achieve outsized returns on your investment if the price moves in your favor. However, if the floor price falls below the strike price at time of your option’s expiration, your Call option will expire worthless (0 SOL value).
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