Trading Justice 416: The Long Call Strategy

In this episode, the Coaches discuss the Long Call Strategy, its strengths, weaknesses, and how it fits in a trader's overall portfolio design. There are different types of traders in the market place but two specific groups stand out - directional (delta) and cash flow (theta). Long calls are a common tactic used in directional trades by traders who want to take advantage of price appreciation, but also want to get control of the underlying asset without having to put up all of the capital required to buy the shares directly. Listen in as the coaches discuss some examples of when to trade long calls, the impact of implied volatility changing on long calls, and some of the rules they use when entering into this trading strategy.

Before that, the coaches discuss the recent market action during our weekly skyline. Stocks soared last week across the board with several indices reaching all-time highs like the S&P 500, Russell 2000, and Dow Jones Industrial Average. The economy reopening theme continues, President Biden signed a $1.9T stimulus package and the FOMC is set to meet this Wednesday with their latest commentary and policy updates. Listen in as the coaches analyze all of the price action and news and give some insight into what is happening in markets right now.

Market Skyline: 1:45

Feature: Long Call 40:35