Options are an important derivative class which allow traders to take positions and generate profits with limited amount of risks. Traders going long on options have to pay a premium whereas those going short/ writing the option charge premium. Apart from this there are multiple option trading strategies which enable traders to further reduce their downside risk and increase the chances of profit making based on different scenarios.
It is one of such option strategies which is used by traders when they have a positive outlook of the market or stock. In this strategy, investor goes long on call option.

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