Now that we have given you the steps to Buy Calls, let's go through an example. The stock you are going to use for this example is Cisco, Inc. (CSCO).

This example comes from the CallsAndPuts.com "Buy Calls" data. Let's go through the procedures step-by-step:

1) You select CSCO from the "June Buy Calls (Tech)" listing:

2) You select CSCO based on the criteria you've established for a good Buy Call candidate (This differs for each option investor based on risk versus reward criteria).

3) Let's assume you read the latest news on CSCO and it appears quarterly earnings will beat analyst's expectations.

4) You access the Stock, Option, BB&RSI links and based on your risk versus reward criteria determine that CSCO is your call option investment choice.

5) Let's also assume that you have an account with ETrade and want to place your order for the buy call option position.

6) Once you log into your account on www.etrade.com, access the Trading > Enter Option Order link. 

7) Place your option order for 4 contracts by selecting the following fields:

8) This purchase of CSCO is for 4 call options (representing 400 shares of underlying stock) at market price. If you want to have your purchase execute at a specific option price, select the "Limit" radial button and enter the price.  

9) Buying call options requires the investor to watch the option price throughout the expiration period. When the call option price has moved to a price that satisfies you, then the call option position must be closed.  This can be done with the following menu selections.

10) The difference between your original "Buy Open" call position and your "Sell Close" position is your profit or loss.

CoveredCalls.com

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