Long call
Buy a call when Market is Bullish,Risk is Limited
and Reward is Unlimited. Increase in volatility helps
position, time decay is only hurt the position
Example:
Now Nifty@6182
Buy Nifty14Jan6400CE@12
If Nifty is Bullish due to global data and 2014 elections If
Nifty touched 6600 in Jan Series your profit would be
strike price plus premium paid
Profit is 6600-6400 = 200 + 12 = 212 x 50 = 10600
Risk is premium paid that is 12 x 50 = 600
YOU CAN APPLY THIS OPTIONS STRATEGY ON STOCK OPTIONS ALSO