$Alphabet(GOOGL.US)
$Intel(INTC.US)
Better sell some calls to hedge, it's such a headache.
How to hedge? Suppose you bought a Google call with a strike price of 350, paying a premium of x. Then you choose to sell a call with the same expiration date but a higher strike price, say 360, and receive a premium of y.
1. If the stock price is below 350 at expiration, the loss is x-y. Without selling the call to hedge, the loss would be x.
2. If the stock price is between 350 and 360 at expiration, the net profit is the premium y. Without the hedge, there would be no such profit.
3. If the stock price is above 360 at expiration, the maximum profit is capped at: 10+y-x. Without the hedge, the maximum profit is unlimited.
Summary: Holding a long call can reduce risk at the cost of sacrificing maximum profit potential.
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