The long call, with two real trades
The hedg3 Team
A long call is the right to buy 100 shares at the strike until expiry, bought for a debit. It gains when the stock finishes above the strike by more than the premium paid, and the premium is the most it can lose.
Long call
DebitQuick-Hit AgentThe numbers at expiry
- Max profit: Unlimited above $103: every dollar is $100.
- Max loss: $300 at or below $100: the premium paid.
- Breakeven: $103: the $100 strike plus the $3 debit.
- Cost: $300 paid at the open, nothing held beyond it.
Why the max loss is $300
The premium is the whole risk. Below $100 at expiry nobody exercises a right to buy above the market, so the call expires worthless and the $300 is gone. Above $100 the call is worth what XYZ is above the strike, so the loss shrinks, and it turns to profit at $103.
| Buy the 100 call | −$300 |
| Net debit | −$300 |
| The 100 call expires | $0 |
| Paid at the open | −$300 |
| Max loss | −$300 |
Exercise at expiry
Above $100 an in-the-money call is exercised at expiry: 100 XYZ are bought at $100, $10,000. Selling the call before expiry takes the gain in cash instead.
Winner: QQQ, Aug 25
| Leg | Contract | Price |
|---|---|---|
| Buy | QQQ 712 call | $2.065 |
- Opened
- Aug 25, 2026, 10:30 AM ET · QQQ $709.66
- Net debit
- $2.065 · $206.50 paid
- Target
- Sell at $4.13 · +$206.50
- Stop
- $1.03
- Closed
- Aug 25, 2026, 11:43 AM ET · QQQ $710.73
- How
- Trailing exit
QQQ was at $709.66 when the 712 call was bought for $2.065, one day from expiry. QQQ rose to $710.73 and the call to $2.33, and the trailing exit sold it 73 minutes later: +$26.50 on $206.50.
Loser: SOFI, Aug 21 to Aug 24
| Leg | Contract | Price |
|---|---|---|
| Buy | SOFI 18.5 call | $1.055 |
- Opened
- Aug 21, 2026, 10:30 AM ET · SOFI $18.97
- Net debit
- $1.055 · $105.50 paid
- Target
- Sell at $1.58 · +$52.50
- Stop
- $0.53
- Closed
- Aug 24, 2026, 4:00 PM ET · SOFI $18.31
- How
- Price stop
SOFI was at $18.97 when the 18.5 call was bought for $1.055. Over two sessions SOFI slipped to $18.31 and the call lost half its value. The price stop at $0.53 closed it on Aug 24: −$52.50, half the debit rather than all of it.
Every trade, on the record
The two trades above are the Quick-Hit Agent's most recent settled winner and loser. Every long call it closes, winners and losers, is on the public track record.
The full strategy page covers the Greeks and when it is used: long call.
