How To Buy Calls (2026)

The earnings report drops, and it’s a massive success. Netflix stock surges to . Because you own the "right" to buy those shares at $400 , your contract is now "in-the-money".

In this scenario, while a regular shareholder saw a ($390 to $420), your call option delivered a 233% return on your $600. The Reality Check: What if it Fails? how to buy calls

After subtracting your initial $600 investment, you’ve made a $1,400 profit . The earnings report drops, and it’s a massive success

Your contract is now worth $2,000 ($20 x 100 shares). In this scenario, while a regular shareholder saw

If the earnings report had been a dud and the stock stayed at or dropped, your option would have expired worthless . Unlike a stock owner who can wait for a recovery, an option buyer has a "ticking clock"—once that expiration date hits, your $600 is gone forever.