A strategy idea for options trading investors.

Here’s a trade with great potential for the readers who like hitting singles and doubles: Dollar Tree Inc. (NASDAQ: DLTR) long call options.

The trade: Buy the DLTR August 62.5 Calls for $2.95 or less.

The strategy: A long call strategy is simple. We profit when the stock rises and our call premium increases as we go deeper and deeper in-the-money. The maximum profit is unlimited because DLTR can continue to rise and our maximum loss is $2.95 if DLTR finishes below $62.50 at expiration. Of course if you are not willing to risk the whole amount you can always use a stop loss to sell the contract.

The rationale: DLTR is a solid fundamental stock. Since the beginning of March, it has been on a tear up until the last six weeks when it slowed as the overall market has declined. The bad news is the market may not be done being bearish. Still, DLTR has held its own the last few weeks staying in a range from $60 to $64. If DLTR can get some momentum going to the upside, it has no overhead resistance to stand in its way.

Dan Passarelli of MarketTaker.com writes the Market Taker Edge options newsletter. Dan has more than 17 years’ experience in the options industry as a market maker, Options Institute instructor and author of “Trading Option Greeks.”