Proper Underlying Stocks For Buying Call Options

In options trading, the perfect environment for buying calls is a bull market. The higher the market moves the better the chances of making money for the call buyers. The worst market for buying calls is a bear market or a market that is going sideways. Even if the market is falling buying call options could make money, but that takes a lot of skill and some luck to pick the right underlying stocks.

Suitable stocks for buying option calls can be found technical and fundamental analysis of a number of stocks. Usually, underlying stocks that have broken above the 50 day moving average are good candidates for buying option calls.


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