Buying long call options can be tricky, leading to losses due to various factors like time decay and strike selection. Barchart’s John Rowland explains the importance of strike selection and finding the right stocks for successful long call trades. He emphasizes the need for strong trends and momentum, not just a bullish opinion.
To increase the odds of a winning call trade, starting with higher-delta in-the-money calls is recommended. John highlights the significance of profiting from long calls with strong trends and momentum, rather than just a bullish outlook. Finding the right stocks is crucial for successful long call trades, alongside strike selection.
John uses curated Barchart lists to identify potential long call candidates, focusing on uptrending stocks, breakout and reversal candidates, and stocks making new highs. These lists help filter stocks with momentum in their favor, increasing the chances of successful long call trades. Proper strike selection paired with strong trends is key for profitable long calls.
Read more at Barchart: 3 Barchart Stock Screeners to Help You Find Better Call Option Trades
