Once the call premium is recouped, the profit from a call is only limited by the price increases of the underlying stock prior to the contract expiration.

Question

Quizplus · Accepted Answer

Once the call premium (the initial cost of the call option) is recouped through an increase in the stock's price, any further increase in the stock's price (up to its price at contract expiration) directly translates into profit for the call option holder, as there is no upper limit to how high a stock price can go before the option expires.

Once the Call Premium Is Recouped, the Profit from a Call