Rate Of Return
Total AssetsLeap calls bet on the right tail. They often lose, but make a huge profit once an upward catalyst occurs.
Sellers are the opposite, exposed to right tail risk. They earn steadily but suffer a huge loss once a tail catalyst occurs.
$Microsoft(MSFT.US) If someone answers that they use long calls as a substitute for holding the underlying stock, I can only say they're gambling addicts. A lottery ticket is just a lottery ticket; the best strategy is to cash out when you win. Using lottery tickets for value investing is truly an eye-opener. Long calls only increase the probability of profiting from volatility, after all, who can predict market fluctuations? Of course, if you're engaging in cross-market strategies to collect premiums, that's a different story. For large capital, selling puts and calls is the worry-free and effortless way; only small capital would solely buy calls. So just treat a lottery ticket as a lottery ticket. 😂
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