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How risky is buying call options?

Asked by Anonymous Sep 02, 2026 22 views 1 answers
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Answered Sep 02, 2026

Purchasing call options is a high-risk, leveraged trading strategy where an investor acquires the right to buy an underlying stock at a predetermined strike price within a specific timeframe. The primary risk is that if the stock price fails to rise above the strike price before expiration, the option expires completely worthless, resulting in the total loss of 100% of the premium capital invested to open the contract.

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