Long Call as Substitute for Long Futures

What this video covers

• Why a bullish speculator would buy a call instead of going long a futures contract, and the exact benefit of the capped worst case
• How a long call's loss is strictly limited to the premium paid, while a long future bleeds point-for-point with no floor
• Why the premium creates a "premium drag" that forces the futures price to clear breakeven before net profit begins
• The correct breakeven formula for a long call: strike price plus premium, and why adding (not subtracting) is the most common trap in this unit
• How to compute net profit at expiration: (futures price minus strike) minus premium, or the full premium lost if the futures finishes at or below the strike
• Why return on equity (ROE) for a bought option divides by the premium paid, not by margin, since no performance-bond margin is required
• How extreme positive ROE figures naturally arise from the leverage of a small premium base, and why a 150% return is normal, not a math error