Long Call vs. Call Spread | Options Strategy Comparison

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The long call option and long call spread (bull call spread) are two similar bullish options strategies. But what are the differences between the two trading strategies?

In this video, we’ll compare the long call and long call spread, discussing the major differences between the two strategies.

More specifically, you’ll learn:

1) The primary differences between buying calls and buying call spreads (using real examples with Facebook options).

2) The pros and cons of buying calls vs. call spreads.

3) When to buy call options and when to buy call spreads instead.

Using real-time examples with Facebook options, we’ll explore the directional exposure, time decay exposure and the implied volatility sensitivity of each options strategy.

Long Call Strategy: https://youtu.be/vvAND3hDRwc
Long Call Spread Strategy: https://youtu.be/sLv01uZ8Q5s

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Visit Our Site: https://www.projectoption.com

Options Trading Courses: https://www.projectoption.com/options-trading-courses/

Comments

rotagbhd says:

1 contract consists of 100 shares, not 100 dollars.

UmTheMuse says:

Does it ever make sense to "leg into" a call spread? Say I start out with a long call, but the trade isn't going so well for me. Can selling a call, say, a couple weeks later reduce your cost basis enough to make it worthwhile?

Harry Tanumiharja says:

Understandable and useful video, easy to understand for beginner

richy r says:

I have a question that for some reason no one could answer. Example my spread I paid for was 200 max profit it’s 280. Let’s say out of the 280 I sell and make 220 what happens to the 200 I invested do I keep that as well.

Mohsin Khan says:

I really appreciate your videos. You're a champ. I haven't seen someone demonstrate such good knowledge about options in such a clear and detailed way. Could you do a video on "Call Spread" versus "Deep in the money Long Call"?

Devel Team says:

Thank you Chris – another excellent presentation – well done!

Doug M says:

very informative

Deepak Shah says:

Very well explained.

bidbuytom says:

Appreciate the video. Thank you

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