This article will explain the ?nuts and bolts? of buying call options. There's also an overview of a home business strategy that made me the money to invest and how to DOUBLE THAT MONEY within a year with a proven investment strategy; this is the same strategy that the rich and affluent class has used for years to make their money work harder for them.

Buy (to open) Call Options:

A call option is a contract between a buyer and seller whereby the buyer is given the right, but not the obligation, to buy a specified number of an underlying stock at a fixed price (exercise price) on or before the expiration date (third Friday of every month). The call option buyer is hoping that the underlying stock price will INCREASE prior to the expiration date, so that he could either buy the stock at the lower exercise price and immediately sell it at market price (thereby securing a profit between the spread) or sell the call option (thereby closing his position) and receiving immediate money; typically, option buyers will sell the call option rather than buying the underlying stock at the lower strike price in order to make money. The following are key definitions that will help you understand the call option guidelines in order for you to make money at home:

Expiration Date: Options for the underlying stock are available for the current month, the month after, and every three (3) months; regardless of the month, all call options expire on the third Friday of the month in which you choose.

Time Decay: With call options, you are paying for time, as you don't own anything (i.e., stock). As such, call option prices are higher the more time you have. In all cases, you are hoping that the underlying stock's price will increase (beyond your exercise price) within the time allotted. When the expiration date arrives (i.e., absence of time), if the stock price hasn't increased beyond your exercise price, your option will expire worthless.

Contract Size: Call option contracts are bought (at the ask price) and sold (at the bid price) at sizes of 100 (i.e., one (1) option contract controls 100 shares of stock).

Option increments: Options are organized by exercise prices that rise sequentially in $2.50, $5, or $10 increments / share

Pricing structure: The price of the call option is based on the exercise price, relative to the price of the underlying stock, and the length of time before expiration; the longer the time, the higher the price. The following is the pricing scheme for each of the available option contract categories:

1) Out-of-the-money: An option whose exercise price is higher than the market price of the underlying stock. The price of options in this category is the lowest as there is a higher risk that the price of the underlying stock will not surpass the exercise price by the expiration date; the call option buyer makes $100 / contract for every $1 that the stock price exceeds the exercise price. If the stock price does not exceed the exercise price by the expiration date, the call option expires worthless and the buyer loses his money.

2) At-the-money: An option whose exercise price is equal to the current market price of the underlying stock. The price of options in this category is moderate as there is a lower risk that the price of the underlying stock will not surpass the exercise price by the expiration date.

3) In-the-money: An option whose exercise price is lower than the market price of the underlying stock. The price of options in this category is the highest as the price of the underlying stock is already higher than the exercise price. At the expiration date, this is the only condition where you will make money.

Now, let's sequence this altogether in a mock call option transaction. Let's say that it's March and you purchase ten (10) contracts (controlling 1,000 shares of underlying stock) of a call option expiring in April (third Friday) for XYZ Company at an ?in-the-money? exercise price of $50 and an option price of $2.50 / share; the stock is trading at $52 / share. I know, I know -- it's a mouthful, but take the time to re-read it so the calculations below make sense to you. Also, most option plays will build off this basic concept in order to make money online.

You pay $250 for each contract, which equates to $2,500 for 10 contracts ($2.50 X 10 contracts X 100 shares / contract). Prior to the expiration date, the stock rises $4 to $56 and you sell your call options at $6 ($6 in-the-money), thus making $6,000 and securing a profit of $3,500 ($6 X 10 contracts X $100 shares / contract minus the purchase price of contracts).

Now if you're like me, you're probably thinking that this sounds great, but how do you make the money to invest? Don't worry, I was asking the same question before I discovered this home business strategy (by fluke). Now, for the record, I don't consider myself a home business type of guy, as stock and option transactions are my passion! What I found though was a simple and structured online home business strategy that actually began to make me real money. It's called the "Instant Profit Center" (IPC) and it happens to be one of the best online strategies, along with a few of my favorite "spread options", that I've seen to make money online.

What makes this opportunity so unique is the training and support that the company provides; there are no books or CDs that get mailed to you. All training is conducted on the website through an interactive video webinar, where the instructor shows you each step in a real time demonstration.

Although there is a little effort involved in getting this business started, you will know exactly what to do and how to do it. Keep in mind that this is a legitimate home business and not some pie in the sky ?Get Rich Quick? tomorrow scheme. However, within 30 days, you should be making a pretty decent income. Continue to build the business and see how much money you really could make at home. It's truly remarkable and I just thought I would be remiss if I didn't at least mention this opportunity to make money at home in this article.

IPC doesn't hide anything from you and you know exactly what this business is about before you apply. If you go to my website, you can join a FREE webinar LIVE online and see why IPC is such a smart and profitable decision if you want to make money online. I guarantee that after seeing this webinar you will be blown away by the potential of this new program to make you money at home.

IPC is a legitimate home business that truly works for the average person. The training, support, and proven system are all packaged in a way that will enable you to make money at home for a long time.