Your First 3 Trades (with $ examples)

Now you know what a Call and Put is. Let's trade.

1. Long Call — "I think it goes up"

Stock $100, you buy $100 strike Call for $3. Max loss $3. Max gain unlimited. Breakeven $103. That's it.

2. Long Put — "I think it crashes"

Stock $100, you buy $100 Put for $3. If stock drops to $80, you can sell at $100, profit $20 - $3 = $17.

3. Bull Call Spread — Why pros do it

Long Call $95 for $6 + Short Call $110 for $2 = Net $4 cost. Cheaper than naked $95 call. Capped profit at $110, but limited risk. Like optioncreator.com's most popular spread.

Open builder to see these live: