> For the complete documentation index, see [llms.txt](https://ethosx.gitbook.io/operps/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ethosx.gitbook.io/operps/types-of-operps/lco.md).

# LCO

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Long CALL OPerps a.k.a. LCO tokens represent buying of CALL options and make money in rising markets. LCO holders pay fix premium in a [settlement cycle](/operps/settlement.md) in return for gaining leveraged exposure to rise in the underlying price.  In following example, <mark style="color:yellow;">LCO holders make 50% profit for just 1% rise in underlying price.</mark> Higher the [leverage](/operps/leverage.md), more is the profit for same premium paid.

> Token holdings are automatically rolled over to the next cycle unless sold

| Variable Name                  | Value                                |
| ------------------------------ | ------------------------------------ |
| Long CALL OPerps Token Supply  | 100                                  |
| Short CALL OPerps Token Supply | 10000                                |
| Leverage                       | 100                                  |
| Premium (per cycle)            | 50%\*                                |
| Cycle Duration                 | 5 minutes\*                          |
| Underlying Price Change        | <mark style="color:green;">1%</mark> |

50  (50% of LCO supply i.e. 100) Tokens are transferred from LCO to SCO pool as Premium.\
100 (1% of SCO supply 1.e. 10,000) Tokens are transferred from SCO to LCO pool for 1% market rise.

<figure><img src="/files/qjLWHEiGWVv81Qs0GqCV" alt=""><figcaption><p>Because of high leverage, LCO holders can make huge profits even with small market moves, despite paying the premium.</p></figcaption></figure>

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Premium and cycle duration values used in this example are meant for our Arbitrum products. On Binance chain, these values are different.
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