When I buy calls I need two things to go right.


Direction AND timing.
That is why most people lose money buying calls.
If you buy a 1 month call and the stock goes sideways for 30 days... you lose everything.
Theta eats your contract 3.3% per day theoretically.
If you buy a 1 year call and the stock goes sideways for 3 months then rebounds, you win.
You gave yourself time to be right.
Step 1. Market is cheap. Sell 1 year portfolio secured put. Collect $10k.
Step 2. Take 6k and buy shares of the company you are bullish on.
Step 3. Take $3k of that premium. Buy 1 year calls on the same company.
Step 4. The calls/shares cost me nothing out of pocket assuming the conservative put I sell expires worthless or I buy it back close to zero.
I make multiples on money I never actually spent.
That is how you buy calls the right way.
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