One of the most popular option strategies, in which a naturally bullish investor focuses on the steady upward movement of an underlying price by taking a long position in call options. Long calls offer a downside protection by limiting losses while opening up the potential for theoretically unlimited gains. This option trading is a leveraged investment for uncovered buyers, since they base their trading on an underlying asset they don’t own or have a long position in.

If an investor is confident there would be a sufficiently substantial increase in the underlying price over the short term, a long call is an instrumental tool to make a profit.