This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any
investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent
returns in the near future.

  • Risk:  The risk of the buyer is the amount paid by him to buy the Call Option i.e. the premium value.
  • Reward: The reward will be unlimited as the underlying asset value can rise up to any value until the expiry.
  • Break-Even Point: The break-even point for the Call Option Holder will be ‘Strike Price + Premium.’


  • Buy 1 Call Option

Currently NIFTY is trading around 5300 levels, and Mr. X is bullish on NIFTY and buys one 5200 Call Option
(ITM) for Rs. 200 premium. Lot size is 50. The investment amount will be Rs. 10000. (200*50)

Case 1: NIFTY closes at 5500 levels; Mr. X will make a profit of Rs. 5000. [(300-200)*50]

Case 2: NIFTY dips to 5100 levels; Mr. X will incur a loss of Rs. 10000 (200*50) which is the premium he paid
for buying one lot of 5200 Call Option.

Payoff Chart:

Bullish Option Strategy - Long Call | Smart Nifty Trader