When you are “bullish” a stock, it is your opinion that the stock is going to go up in price. While you could simply buy the stock, it is often more expensive than using a bullish options trading strategy. You can have a lot more leverage, meaning more potential reward with spending less money using options by simply buying the stock. There are many options strategies to employ when you have a bullish sentiment.
One option strategy you can use, is to buy a call on the stock above where it is currently trading. If the stock trades higher and goes through the call strike by more than you paid in premium you will be profitable. You could also use a call vertical. The call vertical is when you buy a call at a lower strike then you sell a call at a strike two or more higher. By doing this you still get the advantage when the price goes through the strike but you decrease your cost by selling a further out call. Of course the further out call will cap your gains at the strike you sold, but this is a simple method to reduce the cost/risk whenever you buy a call vertical. Another bullish strategy is to sell a put vertical. Meaning you sell the put closer to the money and buy another further away from the money as a spread. If the price of the stock stays the same or goes higher, you make money. If the price declines you would have to close or adjust the trade.
When and how you buy these different option strategies and how to manage them is what we teach at Sheridan mentoring every day. With our options education you can learn to take your sentiments whether bullish or bearish and know how you can use options and the leverage they afford, to your best advantage.