4. Types of call options available on the Tiger Trade app
Long Call Option: This is the standard call option in which the buyer has the right, but not the obligation, to buy a stock at a strike price in the future.
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You basically anticipate that a stock price will go up in the future and you can pay a premium and secure a price now.
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A long call is a bullish trading strategy, where you expect the stock price will increase significantly in a relatively short period of time.
Short Call Option: This is the opposite to a long call option. Here the trader is anticipating that the stock price will drop in the future.
- A short call is a bearish trading strategy, where you expect the stock price will decrease significantly in a relatively short period of time.