Why Would a Trader Buy an Out-of-the-Money (OTM) Call Option?

A trader buys an OTM call option primarily for speculation with high leverage. Since OTM options are cheaper than ITM or ATM options, a trader can control a large amount of the underlying asset for a small premium.

They are betting that the underlying asset's price will increase significantly above the strike price before expiration. This strategy offers the potential for high percentage returns on the capital invested, although it also carries a higher risk of the option expiring worthless.